How much risk do you have to take in each transaction?

What a great question!

Try to limit your risk to 2% per trade.

But this amount may even be a little high.

Especially if you are a novice Forex trader.

Labels: Order to build a Forex robot , Build a stock trading robot , Build a trading robot , Trader robot design , Free Forex Robot , Forex robot programming , Forex Expert Making Tutorial , Build a trading robot with Python , Download Forex Trading Robot , Buy Forex Trader Robot , Automated Forex Robot , Free stock trading robot ,  Learn how to build a Forex trading robot , Alpari trading robot , Forex robot for Android ,  MetaTrader robot design , MetaTrader robot programming , Forex robot design , Forex robot programming , Automated trading

The following is a good example of the difference between risking a small percentage of capital in each transaction and risking a high percentage.

Risk 2. vs. 10% per transaction

Note the table above. The result of 19 trades with a loss in risk is calculated at 2% per trade and 10%. You see, there is a big difference between risking 2% of an account compared to risking 10% of an account in a trade!

If you happen to be in a losing streak and only lose 19 consecutive trades, and assuming a 10% risk per trade, with an initial capital of $ 20,000, only $ 3,002 will eventually remain in your account. .

You lost more than  85% of  your account!

If you risked only 2., you still had $ 13,903 left in your account, which is only  30%  of your total account loss.

Of course, in the worst case, it is to lose 19 consecutive trades, but even if you lose only 5 consecutive trades, it is enough to pay attention to the difference between risk of 2% and 10%.

If you took a risk, you would still have $ 18,447.

If you risked 10. you only had $ 13,122. Even if you lost all 19 of your trades at a 2% risk, your balance would still be more than that.

The point of this statistic is that you need to adjust your risk management rules so that when you have a course, you still have enough capital to stay in the game.

Can you imagine losing 85% of your account? !!

You must earn 566% of the amount remaining in your account to be able to get back to the point!

Trust us, you should never be in such a situation.

” To return to breakeven What should I do? “

You find that the more you lose, the harder it is to get back to your original account size.

This is a strong reason to believe that you should do everything you can to protect your account balance.

Remember that when we say n percent of the risk per transaction is allowed, this is a percentage of your current capital, not a percentage of your principal. So if you had $ 20,000 and you lost and your capital was $ 15,000, in a new trade you have to calculate the risk based on your $ 15,000 balance.

So far, we hope you understand that you only need to risk a small percentage of your account in each transaction in order to survive the loss or loss and also to avoid a sharp drop in capital in your account.

Labels: Order to build a Forex robot , Build a stock trading robot , Build a trading robot , Trader robot design , Free Forex Robot , Forex robot programming , Forex Expert Making Tutorial , Build a trading robot with Python , Download Forex Trading Robot , Buy Forex Trader Robot , Automated Forex Robot , Free stock trading robot ,  Learn how to build a Forex trading robot , Alpari trading robot , Forex robot for Android ,  MetaTrader robot design , MetaTrader robot programming , Forex robot design , Forex robot programming , Automated trading