Hi All, I'd like to know if doubling the lot size doubles the risk (including profit and loss) OR whether it increases it by 4 !
I read somewhere that if you increase your currently traded lot size then the risk doesn't get doubled but instead it quadruples. Is that true?
Whenever I double my lot size (after a long and successful run with a specific lot size), hoping to follow my now successfully established strategy to double my profits, I get blown out in half the time!
So, for e.g. If I'm currently trading at a high enough lot size ( for me, at least because leverage is very high ) of say, 0.25 lots, then if I want to double my profits should I change my lot size to 0.50 or 0.37 instead? I ask for whether 0.37 is correct presuming that doubling the lot size quadruples the risk, so (0.25 + 0.50)/2 = 0.37 is the correct lot size to use if I want to double my profits ( and losses )
Sincere thanks!
I read somewhere that if you increase your currently traded lot size then the risk doesn't get doubled but instead it quadruples. Is that true?
Whenever I double my lot size (after a long and successful run with a specific lot size), hoping to follow my now successfully established strategy to double my profits, I get blown out in half the time!
So, for e.g. If I'm currently trading at a high enough lot size ( for me, at least because leverage is very high ) of say, 0.25 lots, then if I want to double my profits should I change my lot size to 0.50 or 0.37 instead? I ask for whether 0.37 is correct presuming that doubling the lot size quadruples the risk, so (0.25 + 0.50)/2 = 0.37 is the correct lot size to use if I want to double my profits ( and losses )
Sincere thanks!