My capital management rule

17 febrero 2015, 01:39
Felipe Ponce Aragon

This article describes my capital management rule.


My rule is not a universal, "certified" rule. However, I've sticked to it for many years, and it has allowed me to safely withdraw profits, while increasing my lot sizes, all avoiding margin calls.


My rule is:


Open only one trade the size of 0.01 lots, or 1 microlot, for every $200 USD on your account.


All my trades are of the same size, and 4 time a year I slightly increase lot size.

All my profits come from the pips made trading, not by increasing lot size suddenly.


If you follow any of my signals, you'll see that my trades are not of 1 microlot each, but they are in fact 1 microlot for each $200.


At this point, if you are able to configure your account to follow my signal all by yourself, I strongly suggest to follow my rule. Trust me, it's a really good rule! Please follow it? If your lot size or number of trades is larger than my rule, you are at great risk of loosing money! 

And you want to trade Forex to make money, right?


Now. If you can configure your account to follow the rule by yourself, that's all for you, have a nice day. Of you don't know how to do it, keep reading. 


 I offer my signals on MT4, Zulutrade, Equity Fund and Account management. If you use the later two services, I'll handle the capital management for you. Now I'll describe how to configure your MT4 and Zulutrade account to follow my capital management rule.


 To follow my MT4 signals:

 a) Open your Metatrader 4 software

b) Make a click on Tools. A menu opens. Now click on Options. A small window with tabs opens.

c) On the Community tab, type your MQL5 community login and password. If you don't have one, right on this website go to Register on the top right of the page and create a free account. Then go back to your Metatrader software and type your login and password.

d) Click on the Signals tab. On this tab, select an amount on the line "Use no more than:   % of deposit." This is the maximum percentage of your account I'll be able to trade with. Select the percetage you want.

e) Click on the Trading tab. This is the most important tab, which will define the size of trades on your account. You must configure your software so the trades I do, will copy with a size you can handle on your account, producing profits for you. Find the line that reads: "Default lot size:" and select "Default". To the right, you'll see a selection window with quantity amounts. Those amounts are the size of the trade. Select the appropriate size following this indications:

4. Trade size  indications (Lot size indications). Personally, I trade with the equivalent to 0.01 for every USD $200 on my account. For example, if you had $400 on your account and subscribe to my signal, ideally you should select 0.01, and two trades will open of 0.01 each (asuming on the Signals tab you selected 40%, which is recomended). If your account has $1000, I also suggest to select 0.01, and you will be able to have 5 trades open.

5. Every 3 to 4 months, come back to this webpage and review this indications, making your own calculations. As your account grows, you may select a larger lot size. Metatraeder 4 software will not allow you to select the number of trades to be open. However, using both tatbs "Signals" and "Trading" you'll be able to configure the size and number of trades you can handle. 


On Zulutrade:

Select one of my Zulutrade signals and start copying it. Then, go to the configure options and estimate on your PC, using Excel or a calculator, a simple proportion of 0.01 microlot for every USD $200 on your account. You can configure the number of trades and size of each one of them. I suggest try to open more trades instead of biger and fewer ones. For example, if you have $1000, you can open 5 trades of 0.01 lot each, and so on.

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