collapse

Author Topic: What risk per trade should I go with?  (Read 34747 times)

Offline binaryoption1

  • Newbie
  • *
  • Posts: 4
Re: What risk per trade should I go with?
« Reply #15 on: July 26, 2012, 12:11:51 PM »
In my view, before deciding on our hunger for danger, we must first evaluate our management of the avarice and worry aspects. Only then can we set an appropriate danger that we are relaxed with. But according to your information of the EA's dealing outcomes, I would think a highest possible of 5% danger would be in the world of acceptability.


« Last Edit: July 26, 2012, 12:15:46 PM by binaryoption1 »

Offline jefftimothy

  • Jr. Member
  • **
  • Posts: 28
Re: What risk per trade should I go with?
« Reply #16 on: October 22, 2012, 01:00:09 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.

If you have $1000 capital you should not risk more than $20 which is 2% of your trading risk. So you can trade with 0.04 lot or two trade with .02 lot using two currency pair.

Offline Candlestick

  • Sr. Member
  • ****
  • Posts: 927
Re: What risk per trade should I go with?
« Reply #17 on: October 22, 2012, 05:01:26 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.

If you have $1000 capital you should not risk more than $20 which is 2% of your trading risk. So you can trade with 0.04 lot or two trade with .02 lot using two currency pair.

Hes profit factor is 5.5. He could take 10% per trade and be a millionaire probably in less than a year.
For every losing trade hes making 5.5 times more profit. So assuming that he will not have much losing trades with that PF, he can take whatever risk he likes.  :)
« Last Edit: October 22, 2012, 05:06:28 PM by Pipaddiction »

Offline FxStarflight

  • Jr. Member
  • **
  • Posts: 16
Re: What risk per trade should I go with?
« Reply #18 on: November 30, 2012, 03:58:46 AM »
How can you say you have a profitable strategy when you do not even know what lot size to take? :o It goes to show you have not really tested this strategy of yours yet.

You have a stop loss of 50 pips and take profit of 100 pips per trade, trading only 2 pairs and you want to take 2 to 3 trades PER day? It does not sound right to me. Aiming for 100 pips each day is really not easy. You will be an excellent trader if you can profit 20 to 30 pips per day.
Enjoy FREE access to professional education and trader tools when you trade with FXPRIMUS:
http://fxprim.us/chkpdg

Offline claire.williams

  • Trader / Financial Programmer
  • Jr. Member
  • **
  • Posts: 52
  • Full-Time Trader
Re: What risk per trade should I go with?
« Reply #19 on: December 08, 2012, 10:45:23 PM »
All great feedback here - my personal recommendation is 1 to 2% compounded weekly (not daily or per trade).

Works well for most trading instruments (I have a stocks background and now trade Forex too).

I know a lot of people who compound per trade but it can have a hugely negative effect in times when your strategy is most prone to drawdown (e.g. Sideways markets for those who use MA based strategies a lot).


-----
Did my post help you? :)
If yes, kindly press the RED HEART under my nickname on the left! :)

Offline ezekiel chew

  • Signature:
  • Jr. Member
  • **
  • Posts: 18
Re: What risk per trade should I go with?
« Reply #20 on: December 19, 2012, 04:08:35 AM »
How much risk depends on how much can you afford to loose. Factors to consider is what type account are you trading, mini or normal account and what is your margin size? For mini account or small margin advisable not to exceed 3% per trade for huge margin can set your risk 5~10%.
Forex Fund Manager Free Forex Trading Strategies
http://www.asiaforexmentor.com/

Offline Nelsonhimes

  • Newbie
  • *
  • Posts: 1
Re: What risk per trade should I go with?
« Reply #21 on: February 08, 2013, 12:52:56 PM »
I too wanted to know about this and was going to post a question but got the answers from the experts present here.

Offline Wajeeh93

  • Jr. Member
  • **
  • Posts: 11
Re: What risk per trade should I go with?
« Reply #22 on: August 10, 2013, 06:48:00 PM »
That would probably depend on what is your requirement from the forex trading. And secondly, I would say it entirely depends on what profit you are looking for per trade in the forex market. For example, if you opened a positions in the forex market and you are targeting about 50 pips on that position, then the perfect stop loss that I can think of would be about 25 pips. So you should keep the risk limit or the stop loss limit at about half of your profit target per position.
Currently making $100 - $500 a day with <a href="https://spud.iljmp.com/1/wajeeh"> THIS SYSTEM </a>

Offline CondaFX

  • Jr. Member
  • **
  • Posts: 5
Re: What risk per trade should I go with?
« Reply #23 on: August 27, 2013, 11:50:33 AM »
I for myself usually use 2 - 3 % risk per trade and i compound every month. Sometimes when im really confident in a trade i go a little higher but my risk would never exceed 5% ever. With this kind of money management i can reach between 10 - 30 % per month ROI on average.

Offline doremifx

  • Newbie
  • *
  • Posts: 3
Re: What risk per trade should I go with?
« Reply #24 on: February 02, 2014, 10:32:12 AM »
1 to 2 % is great it will walk you a long way

Offline indicator

  • Sr. Member
  • ****
  • Posts: 696
Re: What risk per trade should I go with?
« Reply #25 on: April 06, 2015, 07:46:13 AM »
Famous quot is of 2% of your account. But you can vary this according to your financial situation. If you have only a 100$ account, you can still risk 20$ from that 100$ as 20$ per trade is not a big amount according to your financial condition but high if compare to your account capital.

Offline equityfx

  • Full Member
  • ***
  • Posts: 268
Re: What risk per trade should I go with?
« Reply #26 on: April 09, 2015, 10:19:57 PM »
Quote from: doremifx link=msg=299848 date=1391337132

1 to 2 % is great it will walk you a long way


Yes , available capital is must be in considered. Don't till low amount of capital have target too high in earning of profit from forex market  cause it is also have an impact the risk that will face , more return also will bring more risk , So 2% s good choice for safe the account although in earning of profit also in low amount

Offline FlorinInvest

  • Jr. Member
  • **
  • Posts: 44
Re: What risk per trade should I go with?
« Reply #27 on: April 10, 2015, 10:15:48 AM »
Well I actually have a slightly different sort of risk management. First I divide my capital into basically 10 or 20 slices depending on my comfort zone - each slice of course is worth 10% respectively 5% - so if I have a $1,000 starting capital, a slice is worth either $100 or $50. Those $100 or $50 are how much I am willing to risk for any given trade. But I don't actually risk the whole slice, I go even further and with that slice I apply the notorious 3-to-1 reward-to-risk ratio. I usually calculate the ratio with pips rather then actual bucks.

This way I can start multiple trades and think of every single one as a standalone risk. It's much easier for me this way.

Offline Turtle

  • Jr. Member
  • **
  • Posts: 39
Re: What risk per trade should I go with?
« Reply #28 on: April 12, 2015, 01:24:34 AM »
Never go over 1%. If you only want to define your success for a week, a month, a year, then go crazy with the risk, but if you want to be a successful trader for a lifetime then risk really small, even less than .3%.

Remember your numbers below is the past, it may or may not happen in the future, to protect yourself from uncertain future, respect risk then you will have a long life in this business.

Cheers,
FxTurtle


Quote from: Schneider link=msg=79089 date=1300805012

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 thomsont

  • Jr. Member
  • **
  • Posts: 36
Re: What risk per trade should I go with?
« Reply #29 on: April 12, 2015, 02:55:17 AM »
It is totally depends on your capital and risk accept level.

After years of EAs trading, I am currently using 1% or less in all my EAs.


However, if your capital is small than you might use a bit higher risk, but I do not suggest anything more than 3%.

Alternately, you can use the risk as long as you can sleep well and not looking at the screen all the time :)

 

browse forum

* Recent Posts

Re: Outsidethebox HK Signals & PAMM funds by frescof
[Today at 12:13:21 AM]


Re: US NFP and Canadian Employment change by Umar
[Yesterday at 06:16:38 PM]


Re: Forex Optimum Representative by Hilapur
[Yesterday at 03:14:15 PM]


Re: Outsidethebox HK Signals & PAMM funds by SJWkiller
[April 20, 2019, 05:24:40 PM]


Re: Pegasus FX by nwboater
[April 20, 2019, 01:52:31 PM]


Re: Your favourite car? by 2cuteEssence
[April 20, 2019, 11:12:10 AM]


Re: The Most Common Forex Myths by Loperte
[April 20, 2019, 09:32:09 AM]


Re: Pegasus FX by Pegasus FX
[April 20, 2019, 07:55:47 AM]


Re: Pegasus FX by nwboater
[April 20, 2019, 01:59:30 AM]


Re: Pegasus FX by Pegasus FX
[April 20, 2019, 01:31:24 AM]