I am wondering how you, other traders, are deciding about the lot size with regard to your account balance?


How do you know, how much risk is enough?
For example, having a $5.000 USD on 1:200 leverage. How do you decide how much margin will you use maximum on your balance?

Hi SloForeX.,

1-You have a tested system:then it goes without saying that you would
have tested out of sample for a "safe and profitable" position size based on the max drawdown that you have found OUT OF SAMPLE..if you have 5k and max tested dd for 1 lot is 4k,you better use 0.5 lots or 3*0.1 lots..try to stay below 20% drawdown..retest it with new position size and check if you will be comfortable with it

2-You don`t have a tested system...A-Don`t trade until you have one ..B-Rule of thumb use MAXIMUM 1 lot per every 15k in account C-If you know your stop,add spread and slippage and calculate the position size based on MAX RISK 5% of Equity..if you don`t know your stop..stop trading until you do

Regards
Simba