Management plan for 5k FX account?

Discussion in 'Risk Management' started by Kastro_316, Jan 24, 2008.

  1. Hi there, can someone please take a quick glance at this, and tell me if this is a solid risk management plan to start with? I will modify it as time goes on, and my trading habbits change, but for now this is the basic guidelines I have set up.

    Starting Balance: $5000.00

    Risk Tollerance %: 5%

    MAX stop loss: 50 pips

    PiPs per week goal: 80 Pips

    MAX std lots per trade: 100

    Anything I should change, or Add?

    Thanks, really appreciate it!
  2. What pairs do you plan to trade?
  3. I'm assuming your "max std lots" is a typo.
  4. EUR/USD


    (This plan is based on something im testing out, not for me)
  5. ssss


    Dear Sir

    You are false from start

    1.Divide your capital atleast on 2 accounts ,better on 4 accounts

    2. Exist not fixed stop 50 pips for different pairs

    3. Better not send to any broker any cent
    with exception ,which you won by trader contest
    without charge as prize money

    And if it the case better start mini account with 250$
    4.... PiPs per week goal: 80 Pips

    That is unscientifc objective ,against game theory Puankare,Shannon,Jvon Neumann

    Your respectfully
  6. You should be fine with USD/CAD. Eur/usd movement might stop you out a bit more.

    I have no idea what the previous poster was talking about. :confused:
  7. ssss


  8. I think I figured out what sssssss,ss is trying to say.
    By winning a contest, perhaps your skills will have developed to the point of being profitable with "real money". Still not convinced on having 4 accounts, though.
  9. DB101


    You said Risk Management. PiP goals and lots have little relation to this. They should be treated as seperate parts of your trading plan. Risk % should always apply to the current balance in the account and be maintained without exception. I assume you are doing some type of position or swing trading. I believe a 50 pip stop on the Euro is viable only on wide ranging days. Homework should varify this. As far as the Looney its simply too many pips in relation to its daily movement. If I had a stop that wide I would preempt it with a breach of support/resistance or solid price levels of 00/50. I concur that lot size must be typo. Best of luck.
  10. ssss



    Nature of the risk is complex -legal,technology ,operative

    To win one contest not enough ...

    Must win multiple with paper money and multiple with real money .

    contest which offered in fx 50$ per month
    paper money -1 price 1500 $ margin 250$ real account
    1 price 2500$ king of the mini
    1000$ 1price 2500 $
    #10     Jan 24, 2008