City Traders Imperium Calls for Risk Management to Become a Core Discipline in Trader Education

04 August 2026 | Tuesday | News

Proprietary trading firm urges the industry to prioritize structured risk management training alongside trading strategies, arguing that stronger discipline and psychology are key to improving funded trader success.
Picture Courtesy | Public Domain

Picture Courtesy | Public Domain

 

City Traders Imperium (CTI) is calling for risk management to be taught as its own discipline in trader development, arguing that most education in the prop trading space still treats it as a rule to follow rather than a skill to build.

Strategy gets the spotlight. Entry signals, chart patterns, indicators, and whole courses are built around them. Managing a losing streak without blowing an account rarely gets the same treatment. It shows up as a line in a rulebook, not a subject on its own. CTI thinks that's backwards, and that it's costing traders their funded status more often than bad analysis ever does.

"Everyone wants to learn how to find a trade. Almost nobody sits down to learn how to survive a bad week of them," said Martin Najat, Co-Founder of City Traders Imperium. "That's the part of the job that actually keeps a funded account alive, and it's the part getting the least formal attention."

The pattern shows up clearly once you look at how funded accounts actually end. It mirrors what researchers have found in day trading, more specifically. A study tracking individual day traders' account histories found that persistent trading in the face of losses accounts for the majority of all day trading activity, traders keep going past the point where their own results say they should stop, and called the pattern inconsistent with anything resembling rational learning.

Oversizing after a loss, refusing to cut a position, and misjudging how much room is actually left, none of it is really about market analysis. It's about what a trader does after a trade has already gone wrong.

This isn't just a discipline problem traders can white-knuckle their way through. Business education research has looked at exactly this gap: a university program built around a live financial trading room found that pairing classroom knowledge with hands-on trading decisions was how students actually developed risk management competency, not through lectures on the concept alone .

Position sizing, drawdown limits, and stop discipline get bundled into a challenge's terms and conditions. They are rarely taught as a curriculum with the same weight as chart reading.

CTI's own approach reflects this thinking. Consistency rules, daily loss limits, and drawdown thresholds are built into every challenge, and the firm's Academy already runs a dedicated trading psychology course alongside its strategy training, with 83% of graduates going on to get funded by at least one prop firm. CTI argues the rest of the industry needs to catch up and treat risk education as a core part of preparing traders, not just a set of guardrails they discover by breaching them.

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