Analyzing Risk Per Trade and Margin In Use

What should be our risk per trade? And what about margin?

Well I am sure we all have heard from various sources that we should risking no more than 1-3% of our account per trade.

Personally I believe that the value or percentage of risk per trade is relative since we all have different tolerances for risk.

In addition, if you only have a few EA’s in your account and have a smaller Risk Per Trade, you most likely will not Margin out your account since the lot sizes will be small enough to accommodate several EA’s in your account.

However if you have too many EA’s in one account and still trading a conservative 1-3% Risk Per Trade, then there is a possibility of margining out your account especially if you are using a lower leverage account such as 50:1.

Therefore you must have a balance between not having too many EA’s in one account and only opening the proper lot sizes according to the balance or available at anyone time.

What that being said, this all seems redundant because in the end we personally should be calculating more or less what lot sizes the EA is ultimately going to open since we are responsible for the inputs and outputs from those EA’s.

Remember GIGO. Garbage In, Garbage Out

I wish there was a better or more positive phrase than this. Maybe you know of a more positive one?

Please post your viewpoints or comments below if you have something different to add for the benefit of the readers of this blog.

Thank you and till next time…safe trading.

Mike Torres

(305) 389-0170

About forexrobotblog

I have been a Realtor here in Miami, Florida for the last 10 years. Due to the housing bubble in 2008, I had to quickly reinvent myself. The new career I chose is to trade forex full time. My intention through this blog is to share ideas with you about my experiences in trading forex and to also collaborate with other serious forex traders. Feel free to contact me with any questions or comments you may have.
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