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Author Topic: What risk per trade should I go with?  (Read 32746 times)

Offline Schneider

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What risk per trade should I go with?
« on: March 22, 2011, 02:43:32 PM »
Hello. I have 1K live account.I have a profitable strategy.

Stop loss: 50 pips.

Take profit: 100 pips.

Profit Factor: 5.5

Currency pairs: GBPUSD and EURUSD

2-3 trades per day.

Leverage: 1:100

Trade duration London and New York sessions.

Thank you for advices.

Offline 999cjb

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Re: What risk per trade should I go with?
« Reply #1 on: March 22, 2011, 03:26:07 PM »
Your profit factor looks very good. I'd normally use between 2 and 3%. Perhaps up to 5% if I'm pushing it. I run one of my EAs at 10% but it's a long term trader.

If you are sure of the profit factor on your live account and don't mind taking a risk, go to 5%. But keep an eye on it!

Offline JohnT

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Re: What risk per trade should I go with?
« Reply #2 on: March 23, 2011, 07:26:54 AM »
Hello. I have 1K live account.I have a profitable strategy.

Stop loss: 50 pips.

Take profit: 100 pips.

Profit Factor: 5.5

Currency pairs: GBPUSD and EURUSD

2-3 trades per day.

Leverage: 1:100

Trade duration London and New York sessions.

Thank you for advices.

Depends what are your goals?!  I would trade with 0.2 lot size.

Offline Josef

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Re: What risk per trade should I go with?
« Reply #3 on: March 23, 2011, 09:34:22 AM »
I would add - what drawdown can you handle?

Offline Schneider

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Re: What risk per trade should I go with?
« Reply #4 on: March 24, 2011, 11:31:42 AM »
I can handle 100% drawdown as will trade with money a can lose and everything will be ok.

Offline Josef

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Re: What risk per trade should I go with?
« Reply #5 on: March 25, 2011, 09:16:20 AM »
I can handle 100% drawdown as will trade with money a can lose and everything will be ok.

That is good for you. Take is slow and don't risk more then 1%!

Offline biggreycat

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Re: What risk per trade should I go with?
« Reply #6 on: March 25, 2011, 03:21:53 PM »
wow wat EA are u usin?

Offline Josef

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Re: What risk per trade should I go with?
« Reply #7 on: March 28, 2011, 07:24:37 AM »
wow wat EA are u usin?

That is not EA, that it just strategy.

Offline daffi

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Re: What risk per trade should I go with?
« Reply #8 on: June 04, 2011, 09:30:44 AM »
Hello. I have 1K live account.I have a profitable strategy.

Stop loss: 50 pips.

Take profit: 100 pips.

Profit Factor: 5.5

Currency pairs: GBPUSD and EURUSD

2-3 trades per day.

Leverage: 1:100

Trade duration London and New York sessions.

Thank you for advices.

Well, if you ask this question, you shouldn't be trading live just yet.

Learn more about forex first. There's so much about money-management on the internet, just learn.

Personally I think it's very rigid to risk, say 5% on every EA. The risk has to be adjusted to the drawdowns the EA has. So if you can accept 30% DD, set the risks so that the maximum historical DD is 30%. That's my approach.

MM is one the most important things in trading. If you don't undestand it, you can't be long-term profitable.
Seriously considering: Atinalla 3 and Magic-Champ II PRO
If I helped you, please click on the heart button.

Offline sanfo

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Re: What risk per trade should I go with?
« Reply #9 on: October 26, 2011, 06:06:20 PM »
Youd chosen a good strategy, however I am wondering whether you had over optimize it by the high profit factor?

Any given strategy can only produce a specific expected rate of return.

Please remember, the maximum drawdown will always exceeds that of you expected.

So concentrate on your risk and control it. Strictly follow your strategy in a certain period of time.

You can improve it but do not always change your mind.

Offline Bint_Crusher

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Re: What risk per trade should I go with?
« Reply #10 on: January 16, 2012, 11:14:46 AM »
2% risk per intraday trade is a good rule, 4% for swings.
Not sure about the profit factor of 5.5 though, after all you've risked 50 to gain 100.

Offline Candlestick

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Re: What risk per trade should I go with?
« Reply #11 on: January 16, 2012, 12:00:18 PM »
Im trading higher frequency. Using 1% risk on small account and 0.5% risk on big mirrored account. Thats per trade.
5% per trade is too much risk for 2-3 trades per day. I quess around 1-2% you should be just fine. :)

Offline daffi

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Re: What risk per trade should I go with?
« Reply #12 on: January 16, 2012, 01:24:52 PM »
Btw, profit factor of 5.5 seems to be a bit unrealistic. Are you sure you investigated a period long-enough and that you weren't curve-fitting?
Seriously considering: Atinalla 3 and Magic-Champ II PRO
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Offline Cap_n Ed

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Re: What risk per trade should I go with?
« Reply #13 on: January 16, 2012, 11:01:58 PM »
In my opinion, before settling on our appetite for risk, we must first analyze our control of the greed and fear factors. Only then can we set an appropriate risk that we are comfortable with. But according to your description of the EA's trading results, I would think a maximum of 5% risk would be in the realm of acceptability. Cheers

Offline pinoytrader

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Re: What risk per trade should I go with?
« Reply #14 on: February 08, 2012, 03:31:30 PM »
Ideally I guess you could say that 2% is good, but there are many factors that would effect that since for me at times i risk as much as 10% on a trade, but before you tackle risks, like what most the traders would say, take it slow and easy, try to stabilize your trading performance and I'm pretty sure one thing will lead to another but for now stay on the safe side and best of luck :)

 

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