Skip to content

LEVERAGE

October 22, 2012

Trading with leverage. This should be the core task for each trader. I think mainly because we are not talking about investing. So you should take the highest leverage possible within your trading system. The main problem when talking about leveraging is the system drawdawn. You can blow off all your capital within three days or three hours if it’s not correctly settled.

I will list all the factors:

DRAWDAWN

STOP LOSS

POSITION SIZING

(MEAN REVERTING OR TRENDFOLLOWING SYSTEM)

VOLATILITY

To set the proper leverage to your trading methodology you should consider all these factors. I won’t explain in details now, but just to get some help, I’m trading now with a 15X leverage with these patterns.

From → Uncategorized

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: