Calculating the amount of leverage used. Tips, pointers, pitfalls?

 

Hi All,

Just wanting to get some more information regarding how people on this forum calculate the amount of leverage used on a given EA. No matter your appetite of risk I'm genuinely interested.

As a rule of thumb after back-testing the EA I simply look at the absolute draw down figure and ensure the leverage I use allows me to have this figure in my account at all times plus an extra 10-20% just to be prudent.

Is this too simple? I feel like I am ignoring relative draw down at my future peril.

 
super_noob:

Hi All,

Just wanting to get some more information regarding how people on this forum calculate the amount of leverage used on a given EA. No matter your appetite of risk I'm genuinely interested.

As a rule of thumb after back-testing the EA I simply look at the absolute draw down figure and ensure the leverage I use allows me to have this figure in my account at all times plus an extra 10-20% just to be prudent.

Is this too simple? I feel like I am ignoring relative draw down at my future peril.

 

super_noob:

Just wanting to get some more information regarding how people on this forum calculate the amount of leverage used on a given EA. No matter your appetite of risk I'm genuinely interested.

Is this too simple? I feel like I am ignoring relative draw down at my future peril.
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