Hello,
I have a 25k funded account. Im trying to get it through the challenge phase. If Im trading the NASDAQ100 and I can have a maximum drawdown of 10% and a max drawdown of 5%. If I trade 0.25 lots am I in essence risking 1% of my account?
Also a little talk about leverage if I trade 0.25 lots per pip the maximum amount of money that I can lose is 250$? or 1 % of my total account?
Thank you
Hi, no, your DD is calculating from pip value x pips in DD. can you still back out of this?
No
Can you please expand on how my DD is calculated. I have 25k and I bet 0.25 lots Market moves 100 pips the other way what is my DD
There is 25.000 $ in the virtual challange account. If I place a trade of 0.25 lots. Arent am I risking 1% per trade if it moves more than 100 the other way im out of the trade?
If I have 25k account and trade with 0.25 lots and that goes horribly the other way in the NASDAQ-100 since ive place a bet or a trade with a small amount of my entire capital. Wouldnt the drawdown be smaller?
If Im trading with just 1% of my entire trading capital. if I put in with 0.25 lots im in essence betting with 250$ for my max daily dradown I can have 1250$ per day and 2500 $ per total?
Did I get that correctly
where is your pip value for one standard lot?
Where can i find this? Nation FX is the broker. On FX pro broker I saw CFD`s 1 standard lot 1$ per 1 lot.
How you want to continue this challenge if you don’t have money management? Do you have even strategy?
Bogdan, I mean this helpfully, not rudely: you are NOWHERE NEAR ready to be doing a funded account challenge. You need to know all this stuff like the back of your hand before starting one. And you need to have “passed” it on demo a couple of times before paying anyone to try it on their platform.
Everything you have asked is well answered here and this is where you should start:
I`m betting on the gap that it will close on the NASDAQ-100. What I need help from you is to tell me. If I can risk to lose only 1% OF MY entire account how much should I trade with?
IF I place a trade of 0.25 mini lots is that risking only 1% my entire account?
This is all I want to know if it`s not then how much is it to risk just 1%.
The Damage is done All I can do is go forward. I have strategy I`ve told you in the first statement all I need to know now is how much to trade with to risk only 1% of my account and not lose more a day than 250$ a day.
That is all. Dont overcomplicate it and give other pieces of information I dont need it at this moment.
It varies from broker to broker. The pip value may be $1/lot at NationFX too. It may be $10/lot. Some are. There’s no reason for it to be the same everywhere because each is a different “product”. (Do you understand what a CFD is?).
Again, absolutely no rudeness intended but it’s terribly difficult to help you (which is what we’re trying to do!) because you honestly don’t yet know enough to formulate the right questions.
are you rude to me?
No not all
Ive asked nation fx how much 1 pip is but Im 99% its 1$ pe pip. If its 1$ per pip (Not CFD regular forex account with a 1:100 leverage) If I dont want to risk more than 1% of my 25.000 account. How much do I trade 0.25 mini lot?
Thank you
It clearly depends on how big your stop-loss is (not on the leverage!).
you have all information to do calculation yourself
So even though i`ve risked 250$, it can go on and lose over 1000$?
IF I trade 0.25 mini lot that means Im risking 25$ per pip?and if it goes over 10 pips in the wrong direction ive lost my 1% trade?
No, not at all (unless you trade the news and your stop-loss isn’t honoured, as often happens when you trade the news).
But to work out the position-size you can afford, you clearly need to know how wide the stop-loss is!!
Again, Bogdan, i mean this helpfully, not rudely: you are NOWHERE NEAR ready to be doing a funded account challenge. You need to know all this stuff like the back of your hand before starting one. And you need to have “passed” it on demo a couple of times before paying anyone to try it on their platform.
Stop imagining that your account is $25k
Your account is your max drawdown
If you wish to risk 1% of your account - it must be 1% of you max drawdown
You have leverage of a $25k account.
**This is just one major reason why people fail funded accounts **they don’t realize that their account is the max drawdown.
Good luck!