New Spreadbetting Account Opening Balance

Beginner Questions
1

Hi, im planning for my first live account and have a question regarding an opening balance.

The strategy im going to use requires trading the daily chart, once per day as I work full time 9-5, so day trading is not an option.

But im confused on the amount of starting capital I will require.

The strategy uses the ATR(14) to calculate TP and SL.
TP at 1.0 x ATR, and SL at 1.5 x ATR.

So if the ATR on the daily candle reads for example 60 pips. And I have a £1000 balance. I want to risk 2% per trade. So…

SL at 1.5 x ATR = 90 pips

2% of £1000 = £20

£20 / 90 = £0.22p per pip.

I cant seem to find a spreadbetting company that will allow this pip size using MT4.

Lowest I have found is £0.50 per pip/point.
For 90 pips SL I would then need £45.00.
Which at 2% of balance would mean a £2250 starting balance which seems alot.

Have I calculated this right, or missed anything?

Any advice would be appreciated.

Thanks

2

LCG will allow SB positions at as little as 10p / pip stake size on major pairs. Their in-house platform looks very similar to MT4 but they offer MT4 as a choice if you prefer.

There may be others offering similar.

1 Like
3

Thanks tommor, il go check this out :+1:

4

I know Finspreads offers a 10p per pip stake, but doesnt offer MT4. Seems like LCG is the way to go