5. Risks

⚠️ Please read the following CAREFULLY before investing money in my strategy (especially the Risks section - that's why we start from it) ⚠️

All historical tests were done with the risk 0.5 lots for every 1000 of balance (fix.lot=4).

A more aggressive option is now being used in trading. It trades from 0.6 to 1 lot for every 1000 of balance.

But the lot is increased only in drawdowns which decreases risk significantly. (technical information, not crucial)

If you use absolutely passive investing strategy and enter the trading at the high of the profit curve your risk in the case of repeat of the maximal historical drawdown is ❗️55%❗️of your deposit (but this drawdown can be exceeded; there are 5 drawdowns of the similar size within 6 years of history).

That's why I highly recommend using partial investing strategy.

🟣 Conservative strategy (the one that I use) 🟣

Divide your bot budget into 3 equal parts:

➡️Deposit 1st part immediately.

➡️Deposit 2nd part when the drawdown on my deposit will reach 800$ (see screenshot below how to find it on Monitoring).

➡️Deposit 3rd part when the drawdown on my deposit will reach 2440$.

In this case repeat of the maximal historical drawdown will result in a ❗️43%❗️ drawdown on your account. Your account will recover faster.

🔴 Aggressive strategy 🔴

Divide your bot budget into 2 equal parts:

➡️Deposit 1st part immediately.

➡️Deposit 2nd part when the drawdown on my deposit will reach 800$ (see screenshot below how to find it on Monitoring.

In this case repeat of the maximal historical drawdown will result in a ❗️51%❗️ drawdown on your account. Your account will recover faster.

(see drawdowns($) in 6 years (blue line is month number) for the lead trader account below)

#COPYTRADING #RiskManagement #algotrading #InvestingSafety #BuytheDips