
Forex-Money -Signal Money Management
Depending on your fund size we suggest:
1. Trade with 1 Lot with Stop Loss -100 pips
2. Close (TP) 1 Lot at +100 pips.
You can multiply the lot size to fit into 3-5% account balance.
We can apply the above rules to any amount of lots.
The way we look at it is: (on your example-$10K and 200:1 leverage)
3% risk of $10000=$300
So $300 is max you can afford to loss
Assuming that we place flat -75 pips stop loss
75pips = $300
1pip = $4
If we want to trade 10k mini lots on which
1pip = $1
All you can trade is 4x10k (mini lots) and that will fit into 3% risk
If you get stopped out ,you are down 4 lots x 75 pips = $300.
Assuming of course that you trade one trade.
There is diversification to consider when 3% divided between two pairs.When you have position open already then you calculate 3% risk edge from your core equity not the balance.
Corellation would be divided 1.5%-1.5% (if two collerated trades open in the same time)
This is a simple money management strategy. Obviously each trader has their own management system. We strongly recommend to all our clients to never risk more than 3-5 % of account value. Calculate your pips carefully.
IMPORTANT: It is a crucial strategy of Forex-Money-Signal to place -100 pips stop loss. Please remember that we trade daily,four hour charts and aim only for substantial currency moves. Placing smaller stop losses may close your positions with losses before they move into profits. Our research has shown that -100 stop loss orders are the optimal option with this system and Do make profits.
Forex trading has potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Do not trade money you can not afford to lose. Nothing in our website content shall be deemed a solicitation or an offer to Buy/sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those presented on our website. Please go to useful links and information to learn how to trade safely. Also, the past performance of our Forex Signals of any trading system is not necessarily indicative of future profits. Forex market trading involves high risks and you can lose a lot of money.You must consider the fact that in FOREX market anything is possible and might bring some loss into your account; FOREX MONEY SIGNAL does not guarantee to generate you profits every month. We cannot take responsibility for any losses on your account. You must take sole responsibility to evaluate all trading information provided by FOREX MONEY SIGNAL and use it at your own risk. All information we provide is intended as trade assistance only. By using our FOREX SIGNAL services, you understand and agrees that FOREX MONEY SIGNAL, its agents or employees shall not be liable for any losses of profits either directly or indirectly as a result of using our services.
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