Pity you didn't use the 10:1 leverage Oanda gave you. You would still only have -5% drawdown, but would have made +200% per year (assuming daily compounding as you wrote).
Why wouldn't you use leverage if this is a great amplifier of your profits?
Zero leverage Forex Trading.
- Thread starter DepthTrade
- Start date
Pity you didn't use the 10:1 leverage Oanda gave you. You would still only have -5% drawdown, but would have made +200% per year (assuming daily compounding as you wrote).
Why wouldn't you use leverage if this is a great amplifier of your profits?
A great amplifier of profits can equally be a great amplifier of losses.
Indeed, so make sure your strategy has an "edge". In this example, OP had only -0.5% drawdown, so that gives room to dial up the volume.
the beginners should not use leverage at the first stage of trading because its really a risky financial issue ,
yes it should be , but beginners always try to make sure large amount of profit by using high leverage.
How about beginner bots?
high leverage is not high risk , if there is any risk it is completely with non sense trading plan including zero risk management.
after having good risk management the result of trading can be useless, because market is so uncertain and no one can predict the market with certainly.
this is true fact , but this is a long time process to build a good RM. so traders lost interest after passing sometime.