Hey, friends, how are you?
I have a question about the right lot to get into deals with a capital of 500 .
Hi, that is depending on strategy or strategies. Regards Greg
A general rule is to never risk more than 1% of your trading capital. In your case that would be $5.
Your lot size depends on your stop loss size, as well, and you should always place your stop where it needs to be and not by an arbitrary number.
A good tool is the positon size calculator:
Even though your capital may be small, do not make the mistake of setting your trade size according to what profit you want to make per trade or per day or per week etc. As MissYen says, concentrate on taking only a small percentage risk per trade. If your strategy is consistently profitable this means that you will make a consistent gain. A strategy that on paper is not very impressive will still double your account in a year - as long as you are consistent in using it and you do not take extra risk on a trade.
$500 account size. 1% risk is $5. Try 100:1 leverage maximum and trade 0.03 - 0.06 lot size. Discipline yourself to a maximum daily 5% risk - no more.
While the profits made are small, being consistent over time will see your account growing nicely. On the other hand a few consecutive losing trades would soon eat into it. Simple, but not easy.
best of luck.
Your lot size should be based on capital and % risk per trade as well as the SL you are going to use. As such this will vary from trade to trade. Check on this website for the lot size calculator. Simply put in the details and it will tell you the correct lot size to ensure you risk what you set out to risk. Getting this wrong will empty your account very quickly.
Thank you all for
I’ve done historical tests.
And the strategy looks great, thank God.
We hope that you will achieve profits consistently and continuously
Because I’m going to trade full-back.
I’m using lot now. 0.10 lot
We all increased the account by 100$ add one lot and vice versa
can we look at results of this backtest?
Just on the price chart.