> ## Documentation Index
> Fetch the complete documentation index at: https://www.questforedge.io/llms.txt
> Use this file to discover all available pages before exploring further.

# How an Account Blew Up

> A behavioral case study showing how escalating position size after losses can turn a normal drawdown into account failure.

# How an Account Blew Up

The account starts with a defined strategy, positive expectancy, and 1% risk per trade.

Then a normal losing sequence begins.

Instead of keeping the original risk framework, the trader increases size to recover faster. Risk rises to 2–3%. Additional losses create more pressure, execution becomes less consistent, and risk is increased again.

The failure mechanism is therefore not simply that the strategy stopped working.

**losses → urgency to recover → larger position size → larger drawdown → weaker execution → still more risk**

Once risk reaches 3–5% or more per trade, a short adverse sequence can produce a drawdown that is difficult to recover from.

The case illustrates why risk rules are most valuable precisely when the trader feels the strongest temptation to override them.