Another MM option is to start with a minimum account size. Say, $500.00 using a 6 order maximum sequence. $250.00 Risk.50% of deposit risked. Risk lessens as account grows.
Trade at .01 until the account reaches $1000.00. When $1000 reached, at this point, you are playing with house money.
When account reaches $1000, Increase to .02 which could carry a $500 loss or 100% House money is at risk. Capital is safe. Break even.
When account reaches $1500, Increase to .03 which could carry a $750 loss or 75% House money is at risk. Capital is safe.+50% Profit
When account reaches $2000, Increase to .04 which could carry a $1000 loss or 50% House money is at risk. Capital is safe.+100% Profit
In other words, do not start compounding lot size until you are risking house money
.
These are absolute minimum numbers on higher leveraged accounts to establish base lines for calculation. Risk is up to the user of course. You could use the same MM strategy with a higher balance and the risk levels appear less risky, even though the math is the same.
On my accounts, they have 1:400 or 1:500, so I can safely compound per $500. But, lower leverage accounts would require compounding steps that are higher. A 1:50 account would be about $2000 per initial deposit and steps.
Trade at .01 until the account reaches $1000.00. When $1000 reached, at this point, you are playing with house money.
When account reaches $1000, Increase to .02 which could carry a $500 loss or 100% House money is at risk. Capital is safe. Break even.
When account reaches $1500, Increase to .03 which could carry a $750 loss or 75% House money is at risk. Capital is safe.+50% Profit
When account reaches $2000, Increase to .04 which could carry a $1000 loss or 50% House money is at risk. Capital is safe.+100% Profit
In other words, do not start compounding lot size until you are risking house money
.
These are absolute minimum numbers on higher leveraged accounts to establish base lines for calculation. Risk is up to the user of course. You could use the same MM strategy with a higher balance and the risk levels appear less risky, even though the math is the same.
On my accounts, they have 1:400 or 1:500, so I can safely compound per $500. But, lower leverage accounts would require compounding steps that are higher. A 1:50 account would be about $2000 per initial deposit and steps.