Risk Management Fundamentals
Risk management is the most critical aspect of trading. The primary rule: never risk more than 1-2% of your account on a single trade. This ensures that even a series of losses won't significantly damage your account.
Position Sizing
Calculate lot size based on your stop loss distance and risk per trade. Formula: Lot Size = (Account Balance x Risk%) / (Stop Loss in Pips x Pip Value). Most EAs have built-in lot calculation, but verify the settings match your risk tolerance.
EA Portfolio Diversification
Don't run a single EA on a single pair. Diversify across: multiple currency pairs, different strategy types (scalping + trend following), different timeframes, and possibly different brokers. Correlation between EAs should be low.
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