Need help on Leverage, Position on my Backtest

Beginner Questions
1

FX Pips Lev.jpg700×60 11.6 KB

Attached is my backtest log. Based only on Eur/USD with account denom in USD.

Hi I am still confused on leverage and position sizing despite having read School of Pipsology.

Let’s say I have a starting capital of $500, and my rule is to risk 2% every trade.
For trade #2, a 2% risk on the existing account balance allows a dollar loss of approx. $11. Now if I include my Stop Loss level(determined from price action) of say 29 pips, my 2% risk allows me to 3684 units( i.e. 3.684 micro lots).

Does this represents a leverage of 6.9(3684/534)? If not how do i calculate this?

Thank you for any help in advance!!

2

Yeap, but that works if you have ONLY that position open…
If you have 10 positions open of this same size (each & at the same time) you re levered up 69 times!

3

Let’s say I will only have 1 position open at any point in time or at best 2 positions, is my approach sound?

My Approach:

Determine Stop loss Level in pips --> Risk 2% of account balance --> Determine lot size --> and leverage will take care itself