Does it make sense to raise leverage if a trading strategy is low volatility?

[Scataphagos]

But you have to have exposure to risk to make money.

Once again, leverage is a "two-edged sword".

 

[IAS_LLC]

That goes without saying. There are no free lunches

 

[IAS_LLC]

I should clarify... I'm not advocating using leverage to gamble...I'm suggesting using leverage to achieve the exposure you desire in less volatile contracts

 

[blakpacman]

So for every CL contract traded, one should have ~$45k to avoid being greedy? It depends on an individuals trading style...but in my opinion, if your are trading intraday, you'd be crazy not to lever up.

Fine until one day a random news event causes the market to massively gap against you.

 

[Scataphagos]

Fine until one day a random news event causes the market to massively gap against you.

Seems some have forgotten the recent Swiss Franc revaluation...

 

[IAS_LLC]

I could also get hit by a bus crossing the street...That doesn't mean I shouldn't do it if the risks are understood

Fine until one day a random news event causes the market to massively gap against you.

 

[i960]

Seems some have forgotten the recent Swiss Franc revaluation...

CL is not pegged to a currency hard out like EURCHF was. Shitty example. CL is not going to gap 1000 ticks without your stop taking you out (perhaps with huge slippage but you're still out).

 

[Scataphagos]

CL is not pegged to a currency hard out like EURCHF was. Shitty example. CL is not going to gap 1000 ticks without your stop taking you out (perhaps with huge slippage but you're still out).

I think you're emphasizing the wrong point.

On big leverage, a small move can do you big damage... whether you "understand/accept the risk" or not.

 

[IAS_LLC]

I think you're emphasizing the wrong point.

On big leverage, a small move can do you big damage... whether you "understand/accept the risk" or not.

That is an obvious statement. Just as my statement that you have to take on risk to make money is.

Does anyone here trade futures or currency without the use of leverage?

 

[Scataphagos]

That is an obvious statement. Just as my statement that you have to take on risk to make money is.

Does anyone here trade futures or currency without the use of leverage?

Probably nearly all do... likely have no choice. That is, they don't have enough money to cover the face value of a contract.

"Must take on risk to make money".... well, yes. But you don't need to take on leveraged risk to make money.... unless of course you desire to make "big money, fast". Risk of wiping out goes with that.