- Accueil
- Communauté
- Nouveaux traders
- Deciding on position size
Edit Your Comment
Deciding on position size
Oct 17, 2012 at 08:37
Membre depuis Mar 07, 2010
posts 60
- 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
Membre depuis May 30, 2012
posts 134
Membre depuis May 30, 2012
posts 134
Oct 18, 2012 at 00:38
Membre depuis Jul 18, 2010
posts 6
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 06:45
(édité Oct 18, 2012 at 06:49)
Membre depuis Apr 21, 2012
posts 35
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
Membre depuis Jan 14, 2010
posts 556
Oct 18, 2012 at 09:42
(édité Oct 18, 2012 at 09:42)
Membre depuis Jan 14, 2010
posts 556
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.
Membre depuis Jan 14, 2010
posts 556
Oct 18, 2012 at 09:45
Membre depuis Jan 14, 2010
posts 556
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
Membre depuis Aug 06, 2011
posts 345
Nov 02, 2012 at 19:49
Membre depuis Aug 06, 2011
posts 345
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%!
*Lutilisation commerciale et le spam ne seront pas tolérés et peuvent entraîner la fermeture du compte.
Conseil : Poster une image/une url YouTube sera automatiquement intégrée dans votre message!
Conseil : Tapez le signe @ pour compléter automatiquement un nom dutilisateur participant à cette discussion.