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Budgetting Based On % Risk And Allotted Stop Loss

Discussion in 'General Forex Talk' started by Sokabi Moses, Dec 18, 2008.

  1. Sokabi Moses

    Sokabi Moses Private

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    can anyone help with the link to the video tutorial on BUDGETTING BASED ON % RISK AND ALLOTTED STOP LOSS.

    just saw the diamonds room orientation video, and Sir Pipsalot mention something about making the video in August.

    will love to have the link, can any one help?

    thanks
     
  2. Pharaoh

    Pharaoh Colonel

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    I'm not sure where that video is stashed, but can help with risk management.

    Trades in Diamonds are usually called at % risk of your account balance. The levels I've seen Sir Pips call are 1/2%, 1%, and 2%.

    As an example, if he called a 1% risk with a 20 pip stop loss on a xxxUSD pair and you had $5000 in your account, it won't be too hard to figure out the maximum lot size you should place on the trade.

    1% of $5000 is $50. Pairs ending in USD are $10 per pip if you trade a full lot. You obviously won't be able to trade a full lot. Minilots on these pairs are $1/pip, so trading 1 minilot with a 20 pip SL would be risking $20. Under these conditions, you would trade (at most) 2.5 minilots (2 minilots if your broker won't let you go down to microlots).

    You can read more about risk management here:
    http://www.forexpeacearmy.com/forex...2272-how-manage-risk-while-forex-trading.html
     
  3. Sokabi Moses

    Sokabi Moses Private

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    re:budget lots

    Thanks for the reply....
    i got the video form this site
    Index of /
    actually after watching the video, i had to search the internet for calculators that could help to determine how to know the amount of lots to budget.

    the links are below.....might be useful for others interested, and if you could provide more links....

    Forex Risk Calculator
    Forex Calculators - Pip Calculator, Profit Calculator, Margin Calculator, Interest Calculator
    Pip Calculator, Forex Currency Tools, Currency Trading | Forex Trading Tools

    thanks again for the reply...do appreciate it....BTW ive read your article on risk...read that some months ago.....
     

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