Originally Posted by daraknor

Now, there is another issue. Margin. We need the FreeMargin to stay open. Using the current system (FreeMargin/ multiplier_for_sanity* some_number_which_pretends_to_be_risk) we have free margin open, but a long term trade could easily destroy the account even with small lotsize. (1000 pips SL) If we are doing $ at risk per trade, then the FreeMargin needs to stay open, but we *know* mathematically that the account won't go bust. If we have a minimum margin value preserved in dollars, then we would avoid the bottom line. Unfortunately, this isn't compatible with the way brokers do the math. They calculate margin by %. Many brokers will start closing trades at around 50% or 75%. I have never heard of a trader on here recommending risking more than a small % of the overall account per trade. I would think that the FreeMargin% should always stay above 100% (In other words, fully leveraged but I would only use this math if we're calculating the maximum risk in real dollars per trade.)

Unfortunately there isn't a direct simple calculation we can do to predict the total margin potential. We could have a fixed ($$) or dynamic (% of All $$) system that is protected from loss in trade.

Ultimately the system for risk allocation should be safe for multiple systems to trade with.