Leverage on managed account

[Bank Trader]

While I would like to address your needs, and I would like to counsel you on how to best go about succeeding in your plans. The only thing I can do in good conscious is to tell you to hit the black jack tables because fund managers and people who run money don't even think about targeting 50% a month. You need to re-evaluate your goals big time. Do you know how many people fail at trading FX? Do you know why? Have a conversation with yourself to find out.

I am sorry, I can't help you.

[Gamma_Jammer]

Benkorea

Congratulations, you have successfully passed the first test. While so many other new traders on this site are trying to justify a strategy utilising far far too much leverage, you are asking the right question - how to use a sensile amount. 20-1 sounds about right to me.

In terms of how you do this, most platforms, when they say 100-1 , 50-1 etc are merely stating the MAXIMUM leverage they will allow a trader to utilise. So the answer is simple. Just pick a broker that lets you trade whatever size you want, and keep it small. If you are intending to fund your account with a very small amount, your choices will be a little limited but there should still be plenty of brokers out there that should suit you.

As far as I know CMC lets you pick exact trade sizes down to individual dollar amounts. Mick - is this right?

Good luck

GJ

[elmagd2000]

Originally posted by Bank Trader


Talk to me, tell me how much money you have to trade. And I will tell you exactly how much your position sizes should be and how to use leveraging to maximize your returns.

Bank Trader,

It is a matter of assumptions. you asked me too much questions to determine every thing and I did. why you didn't talk about the other account with 5k and 20% target. If it is not appropriate to your mathmatical equation as well, forget my 2 assumptions and put new ones.

I am eagerly waiting
Hani

[Bank Trader]

Your monthly target should be no greater than 7%.

[elmagd2000]

ok,
We may change our targets to 7% on both 5k and 50k
Go on, Thanks

Hani

[Bank Trader]

On the 5 K account - your looking to make about 20 USD a day, 400 USD a month.

Your max drawdown should be 300 USD a month.

Your max drawdown per day should be 30 USD.

Your position size should be 50,000 USD. (10-1 leverage)

On the 50 K account - your looking to make about 175 USD a day
3,200 a month.

Your max drawdown should be 2500 USD a month

Your max drawdown per day should be 600

Your position size should be 400,000 USD (8-1 leverage)


The account to focus on is the 50k account as it is enough to warrant your track record to be monitored and audited. That audit will allow you to post your % return with industry records allowing you to market your performance to receive additional funds to manage.

But if your returns are -13%, +21%, -15% -9% +30%.... the swings will be to much for institutional investors to want to be invovled in. Consistency is the key, and will be the biggest indicator for gaining more funds, not the return amounts, trust me on this.

Target 5-7% a month ..... dont let yourself fall below 4-5% a month losses......trading is about winning and losing, learning to trade is all about learning how to handle the losses. How to minimize the losses by recognizing that every trade isn't going to be a winner, so recognize the losing trades fast, and get out.

Don't overtrade!!!
Don't get overconfidenct after winning trades!
Don't lose confidence after losing trades!

Stay disciplined and approach your trading without emotion.

Stick to strict guidlines of money management. Gamblers should go to Casino's, traders don't try to double their money in a month.

[elmagd2000]

Thanks

Kindly, would you give more details about how to calculate equation variables.

Hani

[Bank Trader]

Its an in house proprietary model that I can't release.

Put up a month or two of 4-7% returns and we'll talk later.