I am unclear as to how to put the positions on...
In the pdf it says to use 2 to 1 leverage, so:
$100,000 starting balance
$200,000 with leverage
2 mini lots * 13 positions = $26,000 for 1 unit
Earning interest (5%/year) on $26k gives $1,300/year.. Which only translates to 1.3% on the $100k balance....
Question 1: Is this correct? If it is... it is not worth it unless you use a higher leverage and more lots/position. Or do I have this wrong?
Lets say the balance goes down by $1,000, you double up.. ie. add 4 more mini lots:
Core position: $26,000
Addition of 4: $52,000
Total position: $78,000
Now the balance goes down another $3,000:
Core position: $26,000
Addition of 4 mini: a little bit less than $52,000
Addition of 8 mini: a little bit less than $104,000
Total position: a little bit under $200,000 (a few $k)
Now the balance goes down another $7,000:
Question 2: Now you dont have enough money to add on more positions unless you are more highly leveraged... What kind of leverage are people using? It seems like 10:1 might be better..
I hope Im not getting this whole thing entirely confused.. plz help!
In the pdf it says to use 2 to 1 leverage, so:
$100,000 starting balance
$200,000 with leverage
2 mini lots * 13 positions = $26,000 for 1 unit
Earning interest (5%/year) on $26k gives $1,300/year.. Which only translates to 1.3% on the $100k balance....
Question 1: Is this correct? If it is... it is not worth it unless you use a higher leverage and more lots/position. Or do I have this wrong?
Lets say the balance goes down by $1,000, you double up.. ie. add 4 more mini lots:
Core position: $26,000
Addition of 4: $52,000
Total position: $78,000
Now the balance goes down another $3,000:
Core position: $26,000
Addition of 4 mini: a little bit less than $52,000
Addition of 8 mini: a little bit less than $104,000
Total position: a little bit under $200,000 (a few $k)
Now the balance goes down another $7,000:
Question 2: Now you dont have enough money to add on more positions unless you are more highly leveraged... What kind of leverage are people using? It seems like 10:1 might be better..
I hope Im not getting this whole thing entirely confused.. plz help!
