The great wonderful question about money management. I was hoping to get some expert advise here for the fact I still get confused. I am going to implement a trend following strategy that runs on 8 currency pairs. H4 and Daily charts.
Here is the main MM strategy I will be using so have an idea of whats going on.
Hoping to start a low account ballance of $2000.00. I want to only use %2 of my core equity per trade. Now the first trade being placed, that would be $40.00 in the trade using an stop loss based on the far end of the real price moving average. That is more of a safety stop because the strategy indicates exit signals way before. I will be calculating my lots with the daily range as the stop loss. This is not the hard saftey stop, only for calculations. Currently with the EUR/USD daily range being around 151 and the pip value being $1.00 per micro lot I am looking at 0.02 standard lots for the trade. If the math was done right.
I figured with such a small account I will need a micro account.
My problem is leverage. It always confuses me what kind of leverage to get with a account. Especially with running Trades in the H4 and daily patterns. I know the lower the leverage the more conservative it is. I want decent profits, but nothing that will increase my risk and make money management go out the window with an account so small.
What leverage would be sufficient?20:1, 50:1?
Here is the main MM strategy I will be using so have an idea of whats going on.
Hoping to start a low account ballance of $2000.00. I want to only use %2 of my core equity per trade. Now the first trade being placed, that would be $40.00 in the trade using an stop loss based on the far end of the real price moving average. That is more of a safety stop because the strategy indicates exit signals way before. I will be calculating my lots with the daily range as the stop loss. This is not the hard saftey stop, only for calculations. Currently with the EUR/USD daily range being around 151 and the pip value being $1.00 per micro lot I am looking at 0.02 standard lots for the trade. If the math was done right.
I figured with such a small account I will need a micro account.
My problem is leverage. It always confuses me what kind of leverage to get with a account. Especially with running Trades in the H4 and daily patterns. I know the lower the leverage the more conservative it is. I want decent profits, but nothing that will increase my risk and make money management go out the window with an account so small.
What leverage would be sufficient?20:1, 50:1?