Setting up a 1:100 leverage account is ok, correct?

I was a little to confident and i had about 1.5 lot on different price and all long on GBPJPY (cause it is only increasing since 6 years).

Now i have 0.1 lot (long at 229.42) and i hope i will survive.

Of course i would like to take more mini lot in order to cancel my losses but if i do that i won't have enough marging and, furthermore, i am not sure at all that the GBPJPY will increase back.

So i survived but it hurted me a lot.

What settings did you use?

AutoFX,

i warned and questioned already during the holiday season the "forward" testing results of some folks in here, as beeing not sustainable, because of unrealistic overleverage.

I got specially excited, after learning about the overconfident idea to have this EA run in the MT4 contest and the fact that the "mastermind" Bluto decided to vanish.

Since you appear not new to FX, but to this forum, please note that i am a frequent poster in the related 10point3(Goblin beeing one of its hybrids) threads and the paid section of this forum, where you find Terminator+Predator .
Furthermore i am trading a modified version of this EA type in a real account since several month and only survived due to luck and underleverage.

In this thread here, i tried to make very clear statements in previous posts about my experiences with this type of EA and its nasty habit to kill accounts within hours, if traded overleveraged and hoped to give some vital suggestions, which are equally important to the basic settings.
Since i was earmarked as "ultra conservative" with my settings and leverage by several folks, now is the right time to "drop the pants" and see the trading results on some bigger moves during the past days.
I hoped, we could all learn something from the results..........
Keep in mind, that this type of EA will kill your money faster than HagenDaz icecream melts in the sun of New Mexico in summertime, if leveraged wrong.

Janus

Are you talking about the Leverage when you setup your account? ie: 1:00, 1:400, etc

Thanks

The account leverage of your broker is totally unimportant of beeing 1:100 or 1:200..................

Leverage for trading means, what size do you trade as your first lot! using this EA.

So............trading 0.1 lots as a starter (Initial position size/lotsize in the code)
with 10 000 USD in the account is an [b]example only[b].
This was proven way way way to high compared to equity.

Now comes the catch 22:

Most of the time, this EA produces an outstanding series of trades with low margin use and drawdowns......................until............

this very day comes( I assure you it has come in 2006 and it showed up in GBP/JPY already in 2007), where a pair or one currency leaves its range and moves 300 pips or more in a few hours.
This will kill your account, because of a margin call faster than you can even think, IF the leverage in respect to the initial lotsize is too high.

Unfortunatly, if you take a low leverage, most of the time your trading results will not even be close to the ones posted in here.
I told you...........i am making 4% maximum a month on average, which i regard as absolutly outstanding.
But compared to a much higher leverage this is peanuts, but my motto is to trade another day, which you can not, if you blew your trading capital.

So i find it misleading, stupid and arrogant, to post results and market and claim them as the "greatest setup since sliced cheese", where a 6 year old, would already see that this will blow the account one day.

But if you all only want to Demo Test............fine...........i am only interested in real trading, since i am too old for "kiddy stuff".

Janus

I agree completely with you Janus.

__________________
Metatrader 4 - EA Live and Demo Hosting Solutions http://www.omegasupreme.com & Omega Trading Blog!

I've made statements to the same effect, here and on my own forum. Very few traders bother to adjust settings based on very bad case scenarios. I appreciate the ultra conservative approach and I try to get others to be very careful and THINK about what they're doing.

Most of my effort is devoted to writing EAs whose default settings are quite safe. Once someone downloads an EA, though, they're free to go riskier and I always advise caution.

"Unfortunatly, if you take a low leverage, most of the time your trading results will not even be close to the ones posted in here.
I told you...........i am making 4% maximum a month on average, which i regard as absolutly outstanding."

Hello Jarnus,

To achieve 4percent a month what will be the minimum capital youll need if you start with 0.1 Lots ?

Thanks,
Sunwest

Yes, 4% a month is very very good, because if you compound month to month, you will do fantastic.

My forum members include traders who are consistently making 2% to 5% each month, on live accounts, in all market conditions, with fully automatic trading.

No brag, just fact.