myfxbook MPC Model 1K Account
The purpose of our new myfxbook account is to show how we position size, manage, and grow an account from inception. This account will display forward data, nothing to hide. The trades you will see here are actual closed trade signals from our website mpcapital.net For non-subscribers of MPC, I hope this account will be a good model, and education of proper risk management.
Why did we chose 1k? This is an easy number to work with. If a trader is trading 20k and they are looking to follow our method, they simply multiple our 1k account by 20. Also, traders without access to larger capital can still see the fruits of a small account growing over time.
There are several great signal providers out there, however there are also lackluster signal providers. A common unethical practice with dishonest signal providers is to trade multiple accounts, and pick the most attractive account to sell to the public. The idea being 'one of the accounts will hit it big,' while the others are left blown to pieces. Rather than using this unethical practice, we are growing this account publicly.
Our focus? Safety, safety, safety. A slower decline through cutting size when losing, and a quicker incline as we build into winners creating leverage which only risks the "house" or the "market" money. You will see how we does this from the very beginning here.
We are doing this to show that we are striving for complete transparency, and more importantly we are displaying a proper money management and position sizing strategy, because position sizing is absolutely the most important part of trading. In Van K Tharp's book Trading your way to Financial Freedom, he develops a trading system and then tests it in five different ways, changing nothing each time but the position-sizing strategy.
Based on an initial investment of $1 million, the worst of the five scenarios returned 99.5% LESS than the best account in 12 months. The best account returned $2,109,266 a remarkable difference, trading the exact same system with the only difference being position sizing.
For Example:
Let's say a trading system loses 10 trades in a row on average, however also has strings of winners at an average of 5, which triple the size of the losers, thus being a 3:1 reward to risk ratio. Both trading a 50:1 leveraged account.
Trader A (High Risk)
Trades the same system and risks 8% per trade.
After the 10th loss: 8% x -10 = -80%
The available margin left is 20% of the overall account, thus cutting down their buying power by 80% before they could ever get to the winning trades.
Net Account Value: 24% at best
Trader B (Low Risk)
Trades the same system and risks 1% per trade.
After the 10th loss: 1% x -10 = -10%
The available margin left is 90% of the overall account, which is sufficient.
The trader then produces 3x the losers = 30%
Net Account Value: 120%
Sincerely,
MPC
The purpose of our new myfxbook account is to show how we position size, manage, and grow an account from inception. This account will display forward data, nothing to hide. The trades you will see here are actual closed trade signals from our website mpcapital.net For non-subscribers of MPC, I hope this account will be a good model, and education of proper risk management.
Why did we chose 1k? This is an easy number to work with. If a trader is trading 20k and they are looking to follow our method, they simply multiple our 1k account by 20. Also, traders without access to larger capital can still see the fruits of a small account growing over time.
There are several great signal providers out there, however there are also lackluster signal providers. A common unethical practice with dishonest signal providers is to trade multiple accounts, and pick the most attractive account to sell to the public. The idea being 'one of the accounts will hit it big,' while the others are left blown to pieces. Rather than using this unethical practice, we are growing this account publicly.
Our focus? Safety, safety, safety. A slower decline through cutting size when losing, and a quicker incline as we build into winners creating leverage which only risks the "house" or the "market" money. You will see how we does this from the very beginning here.
We are doing this to show that we are striving for complete transparency, and more importantly we are displaying a proper money management and position sizing strategy, because position sizing is absolutely the most important part of trading. In Van K Tharp's book Trading your way to Financial Freedom, he develops a trading system and then tests it in five different ways, changing nothing each time but the position-sizing strategy.
Based on an initial investment of $1 million, the worst of the five scenarios returned 99.5% LESS than the best account in 12 months. The best account returned $2,109,266 a remarkable difference, trading the exact same system with the only difference being position sizing.
For Example:
Let's say a trading system loses 10 trades in a row on average, however also has strings of winners at an average of 5, which triple the size of the losers, thus being a 3:1 reward to risk ratio. Both trading a 50:1 leveraged account.
Trader A (High Risk)
Trades the same system and risks 8% per trade.
After the 10th loss: 8% x -10 = -80%
The available margin left is 20% of the overall account, thus cutting down their buying power by 80% before they could ever get to the winning trades.
Net Account Value: 24% at best
Trader B (Low Risk)
Trades the same system and risks 1% per trade.
After the 10th loss: 1% x -10 = -10%
The available margin left is 90% of the overall account, which is sufficient.
The trader then produces 3x the losers = 30%
Net Account Value: 120%
Sincerely,
MPC
See our myfbook results. Our username = MPC