Do you fear high leverage | Crypto Craft

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Do you fear high leverage

  • #1
  • First Post: Edited 6:50am Aug 31, 2018 12:06am | Edited 6:50am
If your system performs, does it make sense to avoid using high leverage ?
Do you adhere to ultra low leverage, despite your systems success simply due to superstition ?
  • #2
  • Aug 31, 2018 1:03am Aug 31, 2018 1:03am
What do you mean by "high leverage/low starting balance"? what's the numbers for you?

why use low leverage relative to starting balance? it all depends on your system, e.g. a 60% strike rate will give you just shy of 40% chance to have 5 losers in a row in any series of 50 trades, and still 1% chance to have 9 losers in a row, etc. Other strike rate will of course give different numbers
But key is if you trade long enough you will for sure encounter these low probability strings of losers, the only questions are: when (not if)? and can you account withstand these?
  • #3
  • Sep 9, 2018 8:03pm Sep 9, 2018 8:03pm
I like high leverage (>200:1) personally. As a matter of fact, when the US went to 50:1, I got out of currency trading and went back to stock options. Going to try an overseas broker and see how that goes (as far as withdrawing funds go, as that seems to be the main issue with most now).

The was I see it, my trades will do what they do regardless of leverage amount. High leverage just allows me to make more money quicker. To me, it is just another tool at my disposal, certainly nothing to be feared.

But then, I trade differently than most: I don't adhere to standard Risk/Reward, I like high leverage, and I'm a visual trader using indicators. Worked well before, so I have no reason to think it won't again.
  • #4
  • Sep 10, 2018 11:52am Sep 10, 2018 11:52am
Quoting moneymaker2
I like high leverage (>200:1) personally. As a matter of fact, when the US went to 50:1, I got out of currency trading and went back to stock options. Going to try an overseas broker and see how that goes (as far as withdrawing funds go, as that seems to be the main issue with most now). The was I see it, my trades will do what they do regardless of leverage amount. High leverage just allows me to make more money quicker. To me, it is just another tool at my disposal, certainly nothing to be feared. But then, I trade differently than most: I don't...
I like high leverage too as it means I don't have to hold all of my funds in my trading account.
I too have moved offshore. With IC Markets, withdrawing funds via Paypal is free and instant (https://bit.ly/2JxJVBf), which is a great alternative to a 3-day international wire transfer.
  • #5
  • Last Post: Sep 10, 2018 3:21pm Sep 10, 2018 3:21pm
Quoting richyRich27
If your system performs, does it make sense to avoid using high leverage ? Do you adhere to ultra low leverage, despite your systems success simply due to superstition ?
"ultra low leverage" its just a crutch, a safety net for a crappy trading method.. As a rule, the higher the win rate the higher the Leverage you can AND SHOULD GO safely
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