The maximum deposit load - page 2
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I just want to check with you guys that has more experience with the signal settings. I have an account, 1:500, with 2200USD. My Signal Provider has an 1:200 account with 1366USD. I don't even know what deposit load percentage means mentioned in the manual. What value should I put in the "Use no more than: XX % of deposit? Thanks in advance!
For example
Your provider have 1366USD and 1:200. He opened a deal for 1.0 lot. It took him 100,000 / 200 = 500 USD. Its load on the depot is 500/1366 * 100 = 36%. For your account, this is 100000/500 = 200 USD. The load on the depot 200/2200 * 100 = 9%. This is less risky fo you.
But if the situation has changed, the deal has become unprofitable, the loss is -300 USD on provider. For you account it will be -300 * (500/200) = - 750 USD. This is realy bad
In your case, the load on depo is always less, but in losing trades you lose more
If the provider uses a risky strategy, your load on depo can reach 100% so that this dosnt happen, the option "Use no more than: XX %" is applied
For example
Your provider have 1366USD and 1:200. He opened a deal for 1.0 lot. It took him 100,000 / 200 = 500 USD. Its load on the depot is 500/1366 * 100 = 36%. For your account, this is 100000/500 = 200 USD. The load on the depot 200/2200 * 100 = 9%. This is less risky fo you.
But if the situation has changed, the deal has become unprofitable, the loss is -300 USD on provider. For you account it will be -300 * (500/200) = - 750 USD. This is realy bad
In your case, the load on depo is always less, but in losing trades you lose more
If the provider uses a risky strategy, your load on depo can reach 100% so that this dosnt happen, the option "Use no more than: XX %" is applied
How did U get that 750????????
Max deposit load is useless when comparing accounts with different margin requirements. Example:
30:1 with $1000.00 and 500:1 with $1000.00 balance will have different max deposit load with purchase of 0.2 (20 000); 66.7% and 4%. If market goes against U the same amount of money will disappear from your no matter what max deposit load is(actually U will do better with with 66.7% than safer 4% account when Close-Out accrued). I would recommend to change that formula for better account ratings and comparing.
What should the maximum deposit load be?
What is your opinion?
Murat
Drawdown and margin used, both things are deposit load.
What should the maximum deposit load be?
What is your opinion?
Murat