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Sunday, April 5, 2009

Money Management With Fapturbo

Hi friends,
Hope you are having a nice time with the Fapturbo robot. Some folks have asked how to make appropriate risk settings in the robot. We all know that NO expert or robot can always have ALL winning trades. But there are ways to do effective money management so that in the long run you always remain in profit.
There is an in-built money management function that lets you set the amount of your trading portfolio you want to expose to risk. This function is called Lot_Risk_Reductor (LRR). This function automatically calculates how much lot size to open per trade based on the setting you give it. And in the case when things go wrong i.e hitting the stop-loss as may happen once in a while), it protects your account from getting huge losses. This has to be clear on your mind before you launch live trading.
The forum has been very helpful in providing answers which are of great help.
Here are some 'balanced' LRR settings that show how much potential loss your account can sustain in the worst case scenarios, per open trade, for these two currency pairs using the scalper strategy:

To lose roughly 25% (PER TRADE): EURGBP LRR = 20, EURCHF LRR = 70
To lose roughly 15% (PER TRADE): EURGBP LRR = 12, EURCHF LRR = 40
To lose roughly 10% (PER TRADE): EURGBP LRR = 8, EURCHF LRR = 30
To lose roughly 5% (PER TRADE): EURGBP LRR = 4, EURCHF LRR = 14

You have a choice about which option is comfortable for you. Remember that if your trading capital is less than $1000, you have to trade with a broker that allows you trade micro-lots, and then you have to set your lot size to 0.01.
Hope this helps you in your money management decisions.
Trade wisely.

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