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!!