About compound interest utilization and EA settings
Many of you may already know, but when you invest money in trading, there is a concept of simple interest and compound interest.
※ About the difference between simple interest and compound interest
(Simple interest) For example, if you invest 1,000,000 yen at 20% simple interest for 20 years, the simple calculation shows the amount increasing to 5,000,000 yen after 20 years.
(Compound interest) Unlike that, if you use the profits to reinvest with compound interest, the principal of 1,000,000 yen can become as much as 38,330,000 yen after 20 years.
Therefore, in the long run, compound interest is more advantageous.
For some automated trading EAs, there are settings for compound interest, allowing you to operate with total funds including profits.
▼▼ Detailed risk management settings are described in the article below.
＊Please note that not all EAs support compound interest settings.
In some cases, only the lot size is set, but in such cases, for example, when profits are earned, if you include them and determine the loss per trade, the lot size will automatically be decided.
As described above, this method allows for efficient operation.
However, when the amount is small, it is fine, but even with compound interest, as the amount to invest increases, naturally the loss tolerance per trade also increases.
So it’s not just about “compound interest”...
As previously mentioned, set a concrete amount for the loss per trade that you can endure multiple losses without lowering the lot size,
and operate stably by setting that amount.
That is good for mental steadiness and helps you operate for a long time.
People have the desire to make money quickly, but first and foremost, I think the important mindset is "how to minimize losses and how to do it without overexertion."
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Break Scalpel is, indeed, the essence of a trading style that
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It remains a top-seller in EA rankings ↓↓
http://salaryman-investment-auto-trading.com/ea/breakscalsystem/breakscalsystem/
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(It is a bit expensive...)
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This is my most recommended VPS that I also use
⇒ http://salaryman-investment-auto-trading.com/mt4-ea/mt4-vps-comparison/post-1470/
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[Recommended] Shima Rikio’s Real-time Trade
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A current professional trader who I also subscribe to
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