Question about minimum capital required?
When I decide to follow a paticular strategy and I click on fixed lot of .01. The minimum capital required figure that it tells me I need is the minimum required to have 1 trade open or do I need to multiply that figure if I plan on having multiple trades open at one time?
I am having trouble working out how much I need to allocate to follow a paticular strategy and would like to know how the minimum capital required is worked out.
I asked this question of fxstat support but no reply.
Thanks again this forum is excellent with lots of good info.
mn1980,
The calculation is based on past history of trader including the max risk, max open positions and many other parameters based on their past performance. That is why we do not accept traders with less that 3 months track record.
To follow a trader, after selecting your lot size, system will inform you about the minimum capital requirement to follow this trader and maintain your risk same as the signal provider.
We hope this will help you to configure your parameters sufficiently.
Support
FxStat, Power to traders www.FxStat.com
Or better you can ask to signal provider, what is the minimum capital to follow him, I think that you can set manually.
Thanks for the reply mikjurado,
how much would you reccomend as a minimum for me to follow you on one currency pair?
I have this information in my profile. To follow me you just need a minimun capital $120, but you will trade only 1 minilot 0.01=$0,10 cents (price of the pip). When you get $240 then you can set two orders of 0.01 or one order of 0.02 minilot ($0,20 cents price of the pip). This is the formula: Capital/$120=Numbers of minilots you can trade.
Example: $5000/$120=$41. Then you can set 41 orders of 0.01 minilots. Or the same = 20 orders of 0.02 minilots = 10 orders of 0.03 or just 1 orders of 0.41 minilots... If you have any question please write me...
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Thanks for the quick reply,
so I can follow you with $120 but that will allow me to only have 1 trade open at anytime? If I want multiple trades open then I need $120 for each open trade is that correct?
Thanks for the explanation Mikjurado. But further I have a question in terms of the setting here. Currently I have you trading 3 pairs. I saw you were leading in those currency pairs so I added you. According to your formula. I have $2100/$120= 17.5 mini-lots. My confusion comes in the settings at FXstat. Let's just say I take EURUSD for example. The first question asks, how much money should I allocate. Should I say $120 per mini-lot there? On the bottom it says how many max open trades. (assuming for that particular pair)...There is really no way for me to know how much to put here. Am I correct in my reasoning? How many open orders do you typcially have for each currency pair?
And idea that i have for example you can divide $2100/3 pairs=$700 for each pair. So $700/$120=5,83 then you will use 5 minilots of 0.01 for each pair. Usually i always open 3 orders for every pair.
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Thanks mikjurado now I understand about lot sizes.
I will start off by following one pair of yours and have 4 lots of .01.
Do you have a strongest pair if you had to pick one?
I prefer that everybody choose USD/CHF like last option... GBP/USD is more risky than any other.
Thanks for explaining. I understand better.