What leverage do you use and why?
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I think leverage is the consequence of the strategy one chooses, and its risk.
If one trades with a standard 2 or 3% risk per trade, that provides the position size (and leverage), which will normally be way below 400:1 or even 50:1!
Thanks for your comment. So you think, leverage should be less than 50:1?
For example, let’s imagine you have an account with a margin of USD 10,000, and you want to buy EUR/USD at 1.3050 with a stop loss at 1.295 and profit at 1.325. The risk per trade would be 100 pips, or 100 USD per mini lot (10,000 units). With a strategy of 2% risk per trade (i.e. 200 USD), that would allow you to buy 2 mini lots (20,000 EUR/USD), so the leverage would be 2:1.
In the same situation, a leverage of 20:1 (buying 2 standard lots) would mean to risk only 10 pips per trade.
So the strategy defines the leverage.
I read your comment that a leverage of 100:1 might work. The only case I can see that working in the long run is with very tight stop losses. Were you talking about a particular strategy? Thanks
you see, when you lower down the risk per trade e.g 4% to 2 or 3% or lower the leveraging is always go for minimal as you can ,those 50:1 or 100,200 :1 is consider gambling ” win or lose ”
Manuel said 20:1 ( buying 2std lots) risk only 10pips but do you consider if the directions go against you then the 10pips is meaningless….
Leverage! By my understanding, the leverage does not define my trade, the maximum amount of risk I am taking in one trade is what matters. Sound methods to calculate the probability of success and in reference to the probability of the risk, effecting our trade are recommended by me to gauge the reward/risk ratio. Surely, a mathematical model, but very telling. Trading is all about numbers and money goes quick, when the wrong methods and chance/risk scenarios are used.
At every trade, somebody else takes the other side and this individual/organization appraises the situation opposite to us. Hence, we need to have a trading system with positive expectation to stay and succeed in trading. This can only be calculated by numbers.
“Hence, we need to have a trading system with positive expectation to
stay and succeed in trading. This can only be calculated by numbers.”
to me i think not numbers itself because numbers can only calculated thgh
volumne so can you calculate the exact volumne ?some other methods is more
importance. you can use some reliable indicators to gauge the trends.
You are playing with words. Indicators are surely good to propose a trade entry. But then the key point with leverage comes into play: How do you trade the situation, your indicators pointed out: Are you using a credit spread, a naked option, long options a vertical spread, a butterfly, a condor or iron condor. Do you trade an ETF, a sector moving stock, a leveraged ETF, a Futures Contract, that relates and so on. If you have mastered those decisions by your indicators, please give me a hint, how you do it without running numbers and I am all in favor.
Totally agree that only risk per trade is matter.
Higher leverage gives you a possibility to open more trades simultaneously due to smaller amount of margin needed to open a trade. Backside of high leverage is user’s self-confidence when he/she opens unnecessary trades without proper knowledge or preparation.
any spread also when wrong indicators pointing into wrong directions
another words regardless it’s 2:1 , 50,100 400:1 ,all will go into negative
so the markets scenarios nowsday not follow your formula figures…
my percentage of trading above 90%.
are you follow my discussions ? whose answer are you giving to ??
sorry i don know what you say….
“Higher than 90% accuracy in your trading”. This is super fantastic. Would you mind sharing your entry and exit decisions with us and one of your charts with indicators, to have a key visible of your decision making process?
Looking forward hearing back from you,
deposit funds n i’l manage for you or your clients with sharing profits,
Your words on how you achieve 90% trade accuracy: “Deposit funds and I will manage for you or your clients with sharing profits”.
Again, a super fantastic idea, with clear value statement and convincing argument presented.
Why do you even want to share profits? You now have them all for yourself.
Good luck within marketing your concept and thank you for sharing your ideas,
whr else peoples will share you their top secret strategies , “common sense
i am not FREE with all this , THANK YOU VERY MUCH .
Let me summarize in what I understand, that you are saying:
– You found the 90% accuracy trade indicator.
– You cannot or will share a price chart (you are not FREE), to show how your indicator picks trade entries and exits (lah frens – still try to figure out this one).
– You are investing other people’s money and you keep half of the earnings. Your clients can see, how your system works in their account statement, after they wired their money to you (wonder which country).
It just leaves me saying: “Best of luck to you and your unique marketing concept to promote your way of trading other people’s money”.
we have strong technical background and do not need any programming or automation trading machines !
my ultimate answer to you is bring real profits in your capital .
—NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!