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How strict are you with your money management?
Situation: You are setting up a trade and using the BabyPips Position Size Calculator (I leave mine open in its own window whenever I'm trading) to determine how many lots to trade. The calculator comes back with you trading 1.8 lots with the numbers you've entered based on your risk tolerance and stop loss.
Question: Do you round up to 2 lots on this trade and slightly exceed your money management rules or do you round down to 1 lot and play it conservative always staying within your established money management parameters?
over 2 years ago
Best Answer - Chosen by Asker
I'm a very conservative risk-averse trader so I usually round down to 1 lot and stay safely within my risk management parameters. However, if you want to round up from 1.8 to 2 lots, then maybe you can adjust your stop loss a little bit in order to compensate for the additional risk with the extra units...
over 2 years ago
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Answers (1)
I have to agree with HappyPip - it might be better if you round down. In the long run, I think that this will be much better for your trading. You might end up rounding up all your positions, which would break your risk management rules.
over 2 years ago
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ForexEA
http://pipburner.com/10-essential-m... - link to essential money management rules in Forex trading.
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