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

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super_noob
38
super_noob 2014.04.07 03:05 

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.

Tjipke de Vries
6324
Tjipke de Vries 2014.04.07 05:52  
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.

whroeder1
14756
whroeder1 2014.04.07 12:27  

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.
Need moneymanagement LOT size formula based on SL and Account Risk! - MQL4 forum #3
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