Hello Friends!!
I have been struggling with risk management aspect of my trading. Per my RM rules, I don't want to risk more than 5% equity on a single trade. Now, my Trading System might give me entry signals on two different currency pairs. If I take both the positions, I might end up taking a 10% exposure if the pairs are perfectly correlated.
On the other hand, if I take only one position, I will not have used my 200:1 leverage well.
Any thoughts?
I have been struggling with risk management aspect of my trading. Per my RM rules, I don't want to risk more than 5% equity on a single trade. Now, my Trading System might give me entry signals on two different currency pairs. If I take both the positions, I might end up taking a 10% exposure if the pairs are perfectly correlated.
On the other hand, if I take only one position, I will not have used my 200:1 leverage well.
Any thoughts?