Jason:
Is there an easy way to work out what's a safe trade multiplier to use?
For example, my signal provider has a leverage of 1:100 and its maximum deposit load and drawdowns are approx. 30% once a year.
My account is 1:500, so it seems reasonable to multiply the signal up to 3-4x, but I wondered if anyone had views on this, or a more scientific way to work this out?
Your larger leverage does not affect the copying ratio, so by multiplying 3-4 times a signal that has 30% drawdown, will wipe out your account (3-4 times 30% = 90% - 120% drawdown).
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Is there an easy way to work out what's a safe trade multiplier to use?
For example, my signal provider has a leverage of 1:100 and its maximum deposit load and drawdowns are approx. 30% once a year.
My account is 1:500, so it seems reasonable to multiply the signal up to 3-4x, but I wondered if anyone had views on this, or a more scientific way to work this out?