I consider that risk is equal to reward and thus it is not constant with me, I may risk less sometimes or may more, but each time I am satisfied as may be I loss once but I could earn afterwards/
How Much Do You Risk Per Trade?
I would go with 1% if you have a tiny account. But if you have like a $10,000 account I would not risk more then 0.015%. Here's why
Account $10,000
Risk 0.015% = $150 (Could be SL)
If you want I believe its called a risk ratio of 2:1 (2 Wining to every 1 Loss) Then a Wining trade would be +0.03% Which is $300! And thats an amazing salary for the day!
It all comes down to :
Account Size
Risk management system (Where you can take a heavy amount of =losses) (Just my preference)
Win to Loss Ratio
Account Leverage
Thank you for reading
Account $10,000
Risk 0.015% = $150 (Could be SL)
If you want I believe its called a risk ratio of 2:1 (2 Wining to every 1 Loss) Then a Wining trade would be +0.03% Which is $300! And thats an amazing salary for the day!
It all comes down to :
Account Size
Risk management system (Where you can take a heavy amount of =losses) (Just my preference)
Win to Loss Ratio
Account Leverage
Thank you for reading
{quote} I tested several of them, all of which I had 1% max drawdown per trade as a main criteria. I used a demo account (with equity set to the same amount of what I've invested in this live account, not the 1M or 100k that companies advertise). As the account did show a profit and I thought the market is the best teacher, I thought the best way would be to go live but strictly control the risk without busting the entire account. I'm not using any automated trading software so I'm not sure how I can do testing to get the risk. Any advice would...
In this example I calculated everything in a way that my max drawdown before a new high would be 35% which is about the maximum anybody should take since the higher that number the harder it will be to make new equity highs.
The way you trade is that you have a 1% drawdown per trade which could very well blow your account over time since you don't know the numbers.
I would attach the spreadsheet I used so you can figure out the calculations however the file type is not supported and there is one part of it that could be wrong depending on the currencies you're trading. So look up how to calculate this stuff properly and how to test properly before trading.
{quote} Basically to test you need to get a spreadsheet and enter every trade in that spreadsheet. You can test different stop losses and targets and such if you want in that same spreadsheet to see what works best. I'll show you with an example. In this example I calculated everything in a way that my max drawdown before a new high would be 35% which is about the maximum anybody should take since the higher that number the harder it will be to make new equity highs. The way you trade is that you have a 1% drawdown per trade which could very well...
If you can't see it, I've attached a screen cap of it.
{quote} Alright well first of all lets talk about that profit factor. It says the profit factor is 0.86 which isn't good. A profit factor that's higher than 1.00 means that it's profitable but when it's lower than 1.00 which is the case with your fxbook atm it's not profitable which means that over the long run if you keep going like this you will slowly drain your money out of your account. I am also not that familiar with fxbook but I think that Max return drawdown is the max drawdown before a new high. Don't take my word for this though. So if...
Good tips, I should implement it later
Thank you
