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Deciding on position size
Oct 17, 2012 at 08:37
Medlem sedan Mar 07, 2010
60 inlägg
- can someone explain me what is the best method to determine position size?
- should i use a different position size when i'm on a positive or a negative streak?
- should i set targets for changing position size?
i'm sure unserstanding the above will help me a lot with my forex trading!
- should i use a different position size when i'm on a positive or a negative streak?
- should i set targets for changing position size?
i'm sure unserstanding the above will help me a lot with my forex trading!
aaa
Medlem sedan May 30, 2012
134 inlägg
Oct 17, 2012 at 15:07
Medlem sedan May 30, 2012
134 inlägg
Depends on stratigy :)
what s the stratigy u are using?
I believe most calculate their size based on the free margin or equity size.
what s the stratigy u are using?
I believe most calculate their size based on the free margin or equity size.
I am the change in the market that causes you to lose :p / Watch out before I negative pip you! ^^
Oct 17, 2012 at 16:08
Medlem sedan Mar 07, 2010
60 inlägg
i use different strategies, not so sucessful yet 😄.
using scalping, swing trading and some breakouts.
using scalping, swing trading and some breakouts.
aaa
Medlem sedan May 30, 2012
134 inlägg
Oct 17, 2012 at 17:11
Medlem sedan May 30, 2012
134 inlägg
first get a winning stratigy then go worry about lotsizes ;)
I am the change in the market that causes you to lose :p / Watch out before I negative pip you! ^^
Oct 17, 2012 at 20:50
Medlem sedan Mar 07, 2011
1 inlägg
Select one strategy and work with it and Explore out the positives and negatives of the strategy and then things will become clearer to you all
Good luck
Good luck
Oct 18, 2012 at 00:38
Medlem sedan Jul 18, 2010
6 inlägg
In my opinion, your position size should be based on what you're prepared to lose. You need to know your stop loss, account margin available, and percentage of account to risk in order to calculate.
So a basic calculation would be:
Size = PercentRisk * AccountMargin / StopLossPoints
For example,
Size = 0.02 * 100,000 / 100
= 20 Lots
So if your stop loss of 100 points (10 pips) were to be hit, you would lose no more than $2,000 or 2% of your account.
So a basic calculation would be:
Size = PercentRisk * AccountMargin / StopLossPoints
For example,
Size = 0.02 * 100,000 / 100
= 20 Lots
So if your stop loss of 100 points (10 pips) were to be hit, you would lose no more than $2,000 or 2% of your account.
Be first, be smarter, or cheat.
Oct 18, 2012 at 06:31
Medlem sedan Apr 21, 2012
35 inlägg
If you are winning bet the farm if you are losing just demo
10% month
Oct 18, 2012 at 06:45
(redigerad Oct 18, 2012 at 06:49)
Medlem sedan Apr 21, 2012
35 inlägg
Here's an easy system. Account balance divided by 500. example $50/500= .1 Set stop loss at 16 and take profit at 10
after 1st trade if you win you now have $60 . $60/500 =.12 standard lots Set stop loss at 16 and take profit at 10
after 2nd trade if you win you now have $72 . $72/500 =.15 standard lots Set stop loss at 16 and take profit at 10
after 3rd trade if you win you now have $87 . $87/500 =.18 standard lots Set stop loss at 16 and take profit at 10
How much have you made after 10 winning trades??? All from just $50 of your hard earned money.
This system is not recommended for well funded accounts.
after 1st trade if you win you now have $60 . $60/500 =.12 standard lots Set stop loss at 16 and take profit at 10
after 2nd trade if you win you now have $72 . $72/500 =.15 standard lots Set stop loss at 16 and take profit at 10
after 3rd trade if you win you now have $87 . $87/500 =.18 standard lots Set stop loss at 16 and take profit at 10
How much have you made after 10 winning trades??? All from just $50 of your hard earned money.
This system is not recommended for well funded accounts.
10% month
Medlem sedan Jan 14, 2010
556 inlägg
Oct 18, 2012 at 09:42
(redigerad Oct 18, 2012 at 09:42)
Medlem sedan Jan 14, 2010
556 inlägg
nzkiwi posted:
Here's an easy system. Account balance divided by 500. example $50/500= .1 Set stop loss at 16 and take profit at 10
after 1st trade if you win you now have $60 . $60/500 =.12 standard lots Set stop loss at 16 and take profit at 10
after 2nd trade if you win you now have $72 . $72/500 =.15 standard lots Set stop loss at 16 and take profit at 10
after 3rd trade if you win you now have $87 . $87/500 =.18 standard lots Set stop loss at 16 and take profit at 10
How much have you made after 10 winning trades??? All from just $50 of your hard earned money.
This system is not recommended for well funded accounts.
I think that's too much of a risk per trade. You shouldn't risk anymore than 5% of your account in one trade. Obviously, you can have a constant stop loss of 16 pips, so the lot size would have to be adjusted according to the required stop loss, so the loss won't be over 5% of your account's balance in case it happens.
Medlem sedan Jan 14, 2010
556 inlägg
Oct 18, 2012 at 09:45
Medlem sedan Jan 14, 2010
556 inlägg
majid9511 posted:
Select one strategy and work with it and Explore out the positives and negatives of the strategy and then things will become clearer to you all
Good luck
That's good advice.
aj, I think you're looking at the wrong thing at this time - as long as you don't have a winning system, tweaks of money management won't have such an enormous effect on your profitability as you might think of (unless of course you don't have a money management plan in the first place) - only after you find your successful trading system, tweaking the best risk:reward ratios and so on would help you to fine tune it.
Just my 2c.
forex_trader_43716
Medlem sedan Aug 06, 2011
345 inlägg
Nov 02, 2012 at 19:49
Medlem sedan Aug 06, 2011
345 inlägg
j4byers posted:
In my opinion, your position size should be based on what you're prepared to lose. You need to know your stop loss, account margin available, and percentage of account to risk in order to calculate.
So a basic calculation would be:
Size = PercentRisk * AccountMargin / StopLossPoints
For example,
Size = 0.02 * 100,000 / 100
= 20 Lots
So if your stop loss of 100 points (10 pips) were to be hit, you would lose no more than $2,000 or 2% of your account.
Agree 100%!
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