Money management
Hi,I hope I'm at the right place for this. I am a bit confused about money management. I am working on a strategy that will hopefully bring me 10 pips on each trade. Right now, I am testing on a demo account. My next step will be testing on a mini account (100$). I don't know what to expect regarding the number of lots to be used in relation with the margin allowed. Drawbacks of 100 pips are possible before price goes the right way to my 10 pips. What I am looking for is to place as many as 10 trades of 0.1 lot per trade. Is it reasonable with a 100$ mini account? I supposed it would be as long as the 10 trades don't get drawbacks of 100 pips at the same time.Also, I suppose that I am better off with low spread currencies. Am I right thinking that a 10 pips spread currency pair would make money with a 2 lots trade with my 10 pips strategy?Thanks and regards. Chamane
10 positions 0.1 lot (0.1 cent) on a $100 account is unrealistic. Few pips against you and you will be in a margin call.
Do you really think that let the position go in a 100 pips DD just for take 10 pips profit is a good idea? That would be your first question before go ahead with your method.
FerruFx
I don't know, I'm testing. My last 60 trades were all profitable. Right now, I have 11 trades rolling and they're all negative. But I am hoping that they will reverse. I have backtested my strategy with all currency pairs and it was profitable for all time frames from 2007 to 2008. Sometimes there were 200 pips drawbacks but not that often.
Right now, I have 11 pairs rolling and they are all negative (I should have used 0.1 lots instead of 2 lots). But some are starting to go the right way. I think I will wait and test further before applying anything to a 100$ account.
Thanks for answering.
Chamane
I am hoping that they will reverse
If you want to be a succesfull trader, the very first thing is to ban this word from your vocabulary and from your trading style.
FerruFx
You're right. I'm still at the experiment stage. I am hoping just to make sure my system will be working with high probability when I will trade for real with it.
Chamane
You're right. I'm still at the experiment stage. I am hoping just to make sure my system will be working with high probability when I will trade for real with it.Chamane
You hope again !!!
FerruFx
Don't we all hope to make as much money as possible with Forex?
Don't we all hope to make as much money as possible with Forex?
In any job, if you hope to succeed to do your day work ... you will fail.
You must be more confident in life to succeed in what you are trying to do.
Forget "hoping" ... you will see life in another side.
FerruFx
Money management is simply means managing your money in such a way that the ratio of profit is greater than losing.
The 1st important thing is always to understand what actually money management in forex trading is. It can be determining the money you are likely to invest in the forex market at on one occasion. There are usually investors who invest a bunch of their money all at once whereas you can find other who invest only an element of their money at a time.
The top approach to attempt money supervision in currency trading is obtain an amount of money that's not more than 10 times the cash in your own account. Third , manner, you will not lose significant sums involving money upon single trades.
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Hi,
I hope I'm at the right place for this. I am a bit confused about money management. I am working on a strategy that will hopefully bring me 10 pips on each trade. Right now, I am testing on a demo account. My next step will be testing on a mini account (100$). I don't know what to expect regarding the number of lots to be used in relation with the margin allowed. Drawbacks of 100 pips are possible before price goes the right way to my 10 pips. What I am looking for is to place as many as 10 trades of 0.1 lot per trade. Is it reasonable with a 100$ mini account? I supposed it would be as long as the 10 trades don't get drawbacks of 100 pips at the same time.
Also, I suppose that I am better off with low spread currencies. Am I right thinking that a 10 pips spread currency pair would make money with a 2 lots trade with my 10 pips strategy?
Thanks and regards.
Chamane