
Forex-Money -Signal Money Management
Depending on your fund size we suggest:
A
1.
Trade with 2-3 Lots with Stop Loss -75,85 pips
2.
Close (TP) 1st Lot at +50 pips. Move Stop Loss to Break Even on the rest of lots
3.
Close (TP) 2nd Lot at +100 pips.
4.
Close (TP) 3rd Lot at +150 pips.
Set first stop loss and
Forget it
B
Our reaserch and experience has shown that some pairs have different movement capabilities than others. For some pairs with a small range of
daily movement like NZD/USD, USD/CAD, EUR/GBP, USD/CHF we suggest:
1.
Trade with 2, 3 Lots with Stop Loss -75,85 pips away
2.
Close (TP) 1st and 2nd Lot at +50 pips. Move Stop Loss to Break Even on the rest of lots
3.
Close (TP) 3rd at +100 pips.
Applying the above rule with pairs of smaller ranges will allow us to make more profit by closing two lots at +50 and two lots +100,
than would be with the A method where we aim for longer moves and close one lot each 50 pips and set last lot to trail.
We can apply the above rules to any amount of lots.
The way we look at it is: (on your example-$10K and 200:1 leverage)
3% risk of $10000=$300
So $300 is max you can afford to loss
Assuming that we place flat -75 pips stop loss
75pips = $300
1pip = $4
If we want to trade 10k mini lots on which
1pip = $1
All you can trade is 4x10k (mini lots) and that will fit into 3% risk
If you get stopped out ,you are down 4 lots x 75 pips = $300.
Assuming of course that you trade one trade.
There is diversification to consider when 3% divided between two pairs.When you have position open
already then you calculate 3% risk edge from your core equity not the balance.
Corellation would be divided 1.5%-1.5% (if two collerated trades open in the same time)
This is a simple money management strategy. Obviously each trader has their own management system. We strongly recommend to all our
clients to never risk more than 3-5 % of account value. Calculate your pips carefully.
IMPORTANT: It is a crucial strategy of Forex-Money-Signal to place -75,85 pips stop loss. Please remember that
we trade daily,four hour charts and aim only for substantial currency moves. Placing smaller stop losses may close your positions with
losses before they move into profits. Our research has shown that -75,85 stop loss orders are the optimal option with this system and
Do make profits.
Forex trading has potential rewards, but also
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