Hi. I have a system with 1.12% Monthly gain and 5.23% Maximum drawdown.
Can I use this system with 200% bonus? I guess max. drawdown will be 15.69% (I know past performance is not a guarantee of future. Illustration only.)
My another question is, what is the advantage of using 200% bonus instead of increasing the lot size 300%. Pro’s-Con’s.
Thank you
In the terms and conditions, if the equity decreases to bonus amount everything will be liquidated and I will lose everything like a margin call. Can anyone answer the question above considering this?
welcome to the forum!
and apologies for the fact that your very first reply is going to be one you probably won’t enjoy reading, so please excuse me for that …
honestly, these are not great figures
a maximum drawdown (so far) of almost five months’ average profit would put me off it, personally: if i couldn’t quickly and easily work out how to significantly change the proportions of those figures, i’d move on and look at something else
a method that has had a 5.23% drawdown will one day probably have an 8% drawdown, too
sorry!!
nobody will stop you, but personally i strongly advise you, in principle, to stay well away from a broker offering a 200% deposit bonus, because proper, good, well regulated brokers don’t do that, and don’t need to
Hi Flamingo.
I am a newbie but will ask that question: You told…
a maximum drawdown (so far) of almost five months’ average profit would put me off it,
But I guess monthly average gain means that it recovered from the drawdown? I mean if it didn’t recover with monthly gain then the average monthly gain would have decreased? I hope I was able to explain. Then average gain is average gain no matter how much withdraw it has?No need to wait 5.23 DD to recover with 1.12% - It can be 6% gain within a month as long as it maintains average.
Secondly - if I trust the broker, would 100% or 200% bonus make sense with such a system? What is the difference with bonus compared to multiplying lots without bonus?
Sorry I am a newbie 
we all were, when we started 
but that’s why you might not be familiar with not-well-regulated brokers and their very tempting bonus offers, and the strings and catches normally involved with them? 
i guess so … but what if it loses 5% in the first month, makes something small in the second, and then loses 5% in the third? it might, surely? i’m not saying it’s unprofitable! i’m just saying that if it can have 5% drawdowns, for myself i’d want its monthly net to be higher than 1%
how many trades per month does it do?
over how many trades were those 1.12% and 5,23% figures measured?
that depends on whether your trust in the broker is well-founded!
if it’s a broker regulated by FCA or ASIC, that’s one thing … if not (as i suspect from the fact that it’s offering a 200% deposit bonus) that’s something totally and significantly different
be aware that the proportion of traders who ever withdraw significant profits after opening an account on the basis of a 200% deposit bonus is really tiny!
Thank you for your help Flamingo