Does Leverage matter?

[jerryscofield]

Hey guys,

I have this automated Expert Advisor, and the developer of this software has a recommended leverage to use. I am wondering, what would happen (worst case scenario) if I were to use a different leverage.

 

[chen2020]

Hello there!
I guess using a different leverage than recommended can increase the risk of larger losses, potentially wiping out your account quickly in the worst-case scenario.

 

[jomina]

so we don't accept any recommendation at all?

Hello there!
I guess using a different leverage than recommended can increase the risk of larger losses, potentially wiping out your account quickly in the worst-case scenario.

 

[Ophilia]

Hello there!
I guess using a different leverage than recommended can increase the risk of larger losses, potentially wiping out your account quickly in the worst-case scenario.

No not necessarily! If you don't over-trader (open a position with a margin greater than 2% of your capital) and you set a stop loss, the only thing leverage does is reduce your margin and capital at stake which means it is decreasing your risk-reward ratio

 

[FXGold]

Hey guys,

I have this automated Expert Advisor, and the developer of this software has a recommended leverage to use. I am wondering, what would happen (worst case scenario) if I were to use a different leverage.

the worst case scenario is that you could face significantly higher losses and risk a margin call.

 

[Amadeus Vega]

Of course! 99% of people who use high leverage will blow their accounts!
If you don't know how to use leverage, don't use it!

 

[Ethan.ishere]

That is one of the most important things to look out for to manage risk. So they recommended a leverage based on the strategy and integration of the advisor, if you change it then you are basically messing up its entire system.

 

[jomina]

Okay , thanks for the advice,it help me too !

Of course! 99% of people who use high leverage will blow their accounts!
If you don't know how to use leverage, don't use it!

 

[Amadeus Vega]

Okay , thanks for the advice,it help me too !

Find a broker that offers high leverage and a demo account like Capitalcore and try to see how different amounts of leverage can work and how you can work with it. Test it out since it's a demo account, and you can get a hang of it.
DO NOT INVEST MONEY IF YOU DON'T KNOW HOW TO USE LEVERAGE. STICK WITH DEMO ACCOUNT FOR A WHILE.