Your leverage counts for a lot. At 20:1 in terms of Risk at 2% of the current funds in your account it will take 11 loses to drop 20% of your account. This is assuming that you have set your stop loss at an appropriate level equalling 2% of your account should the trade go against you.
How long will it take you to regain that 20% before you can start to grow your account again?
Increase that to 3% risk and it will only take 7 losses to lose that 20%. Ergo the higher your leverage the faster you can lose your account.
Use 200:1 and you can easily lose your account in a single trade.
Take an exceptional event such as when the peg on EUR/CHF was removed. At the time the ratio was about 70:1 long on the EUR/CHF pair. What happened is the peg was removed and the pair dropped so fast the majority of the SL's did not react and many people lost a lot of money. Even well established companies went to the wall on that one.
You put a single unit of your currency (does not matter which currency. Could be GBP, YEN, Raoul, Turkish Lira) long on that pair in 2013 at 20:1 leverage.
The pair dropped over 22k pips. How much will you now owe the bank because your Stop Loss's failed?
Now multiply that amount by 20 which is what you are doing at 200:1
A FACT although not FX Trading. A hedge fund called Long Term Capital Management (LTCM) used leverage well outside the normal bounds of between 2:1 to 10:1 for hedge funds.. Then in 1998 the SNP index shot up and they lost 6% of their fund in May then a further 10% in June of that year. On 17th August the Russians defaulted on their debt payments. LTCM did not much direct exposure to Russia. By the friday LTCM had lost another 15% of its capital equal to $550 million. Due to the leverage the companies portfolio was in the realms of about $120 billion. If they had not been rescued by the banks at a cost of about $4 billion the fall of that hedge fund would have been catastrophic to the financial markets globally.
So go figure they were not using 200:1 leverage although higher than the normal maximum of 10:1 for hedge funds.
If you want to know more about LTCM's demise find out either on the internet or get a copy of More Money THan God by Sebastian Mallaby for that and even more interesting facts about hedge funds :)
Don't put limits on your imagination, there is no telling.............