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Old 2009-03-22, 09:21 AM   #314 (permalink)
evian
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Quote:
Originally Posted by duwi View Post
Can someone tell me why 400:1 is more risky for RobotMiner (we are now talking specifically for RoboMiner)? Can someone please explain with some numbers?
I do agree 400:1 is more risky in general, but not for RoboMiner case.

I think it's 400:1 is the best since RoboMiner doesn't close lost trades - it let them floating until hit TP one day. So with 400:1, it will give more room for RoboMiner to breath - to avoid Margin Call. That's what I understand.

Am I right or wrong?
With a smaller amount of real leverage applied on each trade, you can afford to give your trade more breathing space by setting a wider but reasonable stop and avoiding risking too much of your money. Means you need lower amount of money to hold up that 2500 pips. A highly leveraged trade can quickly deplete your trading account if it goes against you as you will rack up greater losses due to bigger lot sizes.
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