Most traders have exactly one risk control: a stop on each trade. That caps a single trade — and nothing else. Robust risk management layers limits at three scales: per-trade, per-day, and per-week. Each catches a failure the others can't, and together they make an outsized loss structurally very hard.
The three layers
Per-trade — your ~1% risk, enforced by the stop and sizing. Caps any single trade. Per-day — the daily loss limit (say 2–3x your trade risk). Caps a bad session — the spiral of several losing trades that a per-trade stop won't stop. Per-week — a weekly loss limit (say 2–3x the daily limit). Caps a bad streak — several red days in a row, which is your signal to step back entirely and reassess.
Why you need all three
They fail independently. You can honor every per-trade stop and still bleed out over a session of small losses — that's what the daily limit catches. You can honor every daily limit and still grind down over a rough week — that's what the weekly limit catches. Each layer is a backstop for the scale above it, so no single trade, session, or streak can do damage you can't recover from (respecting the brutal recovery math).
One stop caps a trade. One daily limit caps a spiral. One weekly limit caps a streak. Three layers, three failure modes — miss any layer and that failure mode is uncapped.
Setting the numbers
Tie them to your risk unit so they nest cleanly: per-trade = 1R, per-day = 2–3R (2–3 losers ends the day), per-week = 2–3 daily limits (a genuinely bad week ends the week). Hitting the weekly limit should trigger a real pause — review, not revenge. NoVo enforces the per-trade and per-day boundaries structurally; the weekly discipline is yours, and it's the one that saves you from grinding a losing streak into a real drawdown.