DislikedSo, Fok, what would you consider a usual lot and a bigger lot?
Thank you.
sIgnored
I'm going to demo this system for a while and during demoing I'm also going to choose the lot size. But right now I see it this way:
Let's say we created a demo account $3,000.00 and we're going to trade 4 pairs. My SL 50 and I don't want to risk more than 3% of the capital.
3% of $3,000.00 is equal $90.00
We have 4 pairs, so for one pair it would be $90.00 / 4 = $22.50
If $22.50 is equal my 50 pips' SL, then one pip is equal $0.45
That means that the usual lot size should be 0.045. But since the minimal lot size is 0.01 (not 0.001), we have to change this 0.045 into 0.05.
So, my usual size for $3,000.00 is 0.05, SL 50 and I trade 4 pairs.
That means that if all four pairs hit stop-loss at the same time:
4*50*10*0.05=100, I would lose $100.00, and it is 3.33% of my capital ($3,000.00)
But, if I see that the entry conditions are not just good, but perfect (all four dots aligned, or 20, 80 and 320 are the same color etc.), then I would risk not 3.33%, but 6%.
That would mean:
(0.05*6)/3.33= 0.09
So, with $3,000.00 and SL 50 , if I'm willing to risk between 3% and 6%, my usual lot size would be 0.05 and the bigger lot size would be 0.09