Lot multiplying in low leveraged account vs high leveraged account (copy trading)

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Hello everyone,

At the outset, I apologize if I'm wrining in the wrong section or if this topic has already been discussed (I found no explanation despite deep forum searches).

Let's assume there are two parallel accounts:

1.

Signal's leverage 1:500

Subscriber's leverage 1:20, subsciber using a lot multiplier (meta trader 5 plugin) by x25 (25*20=500),

2.

Signal's leverage 1:500

Subscriber's leverage 1:500

Maybe its a stupid question but is there any difference in system working between such two?

 

Stop worrying about leverage and instead worry by risk.

Risk depends on your initial stop loss, lot size, and the value of the symbol. It does not depend on margin and leverage. No SL means you have infinite risk. Never risk more than a small percentage of your trading funds, certainly less than 2% per trade, 6% total.

  1. You place the stop where it needs to be — where the reason for the trade is no longer valid. E.g. trading a support bounce, the stop goes below the support.

  2. AccountBalance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the spread, and DeltaPerLot is usually around $10/PIP but it takes account of the exchange rates of the pair vs. your account currency.)

  3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
              MODE_TICKVALUE is not reliable on non-fx instruments with many brokers - MQL4 programming forum (2017)
              Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum (2018)
              Lot value calculation off by a factor of 100 - MQL5 programming forum (2019)

  4. You must normalize lots properly and check against min and max.

  5. You must also check FreeMargin to avoid stop out

  6. For MT5, see 'Money Fixed Risk' - MQL5 Code Base (2017)

Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5 or 0.1 Lots maximum.

 
wbieniawski:

Hello everyone,

At the outset, I apologize if I'm wrining in the wrong section or if this topic has already been discussed (I found no explanation despite deep forum searches).

Let's assume there are two parallel accounts:

1.

Signal's leverage 1:500

Subscriber's leverage 1:20, subsciber using a lot multiplier (meta trader 5 plugin) by x25 (25*20=500),

2.

Signal's leverage 1:500

Subscriber's leverage 1:500

Maybe its a stupid question but is there any difference in system working between such two?

Your risk is the same but you have a much larger chance of a margin stop out in the first example, like William already pointed out.

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