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Risk Management

Risk is controlled by 3 variables:

Covering Loss Percent​

This setting controls the rate of lot size increase and has a strong influence over risk. This setting utilizes increased lot sizes to recover previous losses.

  • 100 = loss attempt to retrieve 100% of previous loss on the same currency pair and direction
  • 120 = attempt to retrieve 100% of the loss + 20%, and so on.

Profiles:

  • 105 - 110 are considered more conservative settings
  • 110 - 120 are considered medium risk for account sizes 10K USD or greater
  • 120 - 130 is high risk seeking higher profits.

For safer users and smaller accounts, 105 - 120 range is ideal.

  • lower Covering Loss Percent = a more conservative approach
  • higher Covering Loss Percent = more aggressive, riskier, more potential profit

Small accounts below $10,000 USD should employ a lower covering loss percent.

danger

If you choose a recovery percentage over 130%, then you must choose much smaller lot sizes than recommended. Because the higher covering loss percentage setting will increase lot sizes rapidly.

Lot size​

Controls the initial lot size your Bot will take on typical (non covering loss) trades. Please see possible lot sizes in the lots and risk section.

Lot sizes should be balanced with the recovery factor you wish to employ. A higher recovery factor should pair with a lower lot size and vice versa. If you will utilize a 150 - 200 range covering loss percent, a lot size lower than the manual outlines in the lots and risk section should be considered, because your lot sizes on recover trades will increase at a faster rate the higher you set your standard lot size settings.

Max orders​

This controls the max times the lot size can increase on covering loss trades. Once it reaches this level, the algorithm will turn off the pair and need to be increased to continue trading or reset. This setting is more of a safety control. If set too low, it may throw off profit. Set too high and it may allow recovery trades to increase and put your account in jeopardy due to large lot sizes.