Hello, I'm new at this, and I'm running a demo account with an EA. It's $50,000 account, and I'm showing some pretty good profits. Most of the time, if I closed all open trades, I would lose about $500, more or less. There have been times where it has been as high as $5000, but that's the largest amount I've seen. I have the account hooked up to MyFXBook. Is there a way to find out the highest dollar amount that was at risk at any given time? What is that number called? I originally thought it was drawdown, but I've found that's not the case.
As I said, I've never seen it have more than $5000 at risk at any given point. But I have no idea how high that number may have gone when I wasn't looking at the account. Is there any way to find that out?
Knowledge is very important to trade in the forex market. Without knowledge, you can not survive in this risky market. So, before going to the live account you should gather all kinds of knowledge properly.
Risk management is such a thing which is very individual actually. Some traders prefer to create risk management practices according to their trading strategy. Usually, people choose 2-4% per deal as the foundation of their risk management practices, however we have to understand that it's not enough to reduce risks. You also must have to use SL, because it helps you to reduce risks to lose all your accumulations. There are plenty of variations of risk management practices, the main here is to create something and comply with this system, because this thing assures you that you won't lose all your fund in couple of days. It doesn't matter tha you make 4-5$ per day, you should understand that it's temporarily until you boost your deposit.