The key to successful Forex Trading is good asset management and risk control. The reason why we use Forex Trading Systems or robots to do automatic trading is not because we believe that they can predict the future but that they can help prevent human mistakes. A robot is perfect is discipline because all it does is following what it is told to do. And that is exactly what is needed for long-term steady victory in the Forex market.
Human beings are instinctive and greedy. When we look at a trade, if we sense that it gives a good feeling, most would tend to bet more. And that’s the problem of most Forex investors and that’s why most investors lose money in the market. For people who use robots to trade, if you often intervene with the robot just because you feel good about a certain situation, than it’s better for you to skip the whole idea of auto trading.
In conclusion, we must take good care of our money by following strictly to our protocol. This is the key to gaining steadily and to survive the Forex market well and beyond.
I suggest people to adjust the risk control level of each trade to between 1%~2% of the total asset. Take US$5,000 as an example. The 1% of 5000 US Dollars is 50 US Dollars. This $50 is the maximum amount allowed to be lost (the risk). For example, we set the affordable risk in one transaction to be 50 pips. $50 divided by 50 equals $1. Therefore, $5000 of total assets and 1% risk control would make 1 pip of lost $1.
One pip represents the smallest price change in Forex trading which is in points of percentage. In the Forex Trading market, usually prices are quoted to the nearest 4 decimal places. E.g. EUR/USD is bid at 1.1909 and offered at 1.1913 then the spread is 4 pips wide. I said usually because Japanese Yen is quoted to 2 decimal places only.
A standard lot requires US$1000 which is leveraged at 100:1 to allow US$100,000 to be controlled. A mini lot requires US$100 which is leveraged at 100:1 to give $10,000 base currency.
In FAP Turbo, there are two kinds of assets control, manual or auto. We recommend using Auto mode, because it can adjust according to the amount of account assets. The amount of trade as well as the gain or loss of every trade would change the account value, because guarantee is required for every trade.
For FAP Turbo to control the money, it must be allowed to adjust two factors. The first one is Scalper_UseMM which should be turned on. MM stands for money management. The second one is Scalper_LotsRiskReductor or LRR for short. This is the risk control level we set, like 1 for 1% of risk.