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Forex risk calculation?


Hi

If i want to calculate the maximum amount to invest for a fixed risk (1000$) per trade, what will be the formula.

Risk 1000$
Pip at risk:: Variable( determinated using a graph)
Amount to invest: To be calculated

M.Theriault

No Idea what the calcuation is but don't gp by graphs go by the F value to see real significance. A graph does not do this. But a number(s) do.

WE

you can register in this site and ask your questions via a live chat. good luck.

this is not how you do it, you should have a risk and reward ratio for every trade, if you start a trade with a 50 pip stop you should be looking for a 100 pip profit cycle for example. you are risking 1 pip to make 2. this is called money management ratio of 2:1. if you are right 50% of the time you just became a millionaire. you can operate on much larger ratios if you trade larger trends. the scenario you are asking about is not a real life situation, mine is. any risk calculation must include reward.

good trading
mark mc donnell
www.forexearlyarning.com

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