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You may have already heard this, but choosing appropriate lot sizing for your trading system is a key ingredient for developing a good system. You can specify a lot size as simply as declaring one in an internal variable as a fixed lot size for every order, but we will explore a simple method that calculates the lot size based on a percentage of your free margin.
There is a little math behind the scenes, but basically, if you choose a custom risk setting of 1, you will trade 0.01 micro lot for every 1K in equity size. Thus, with a custom risk setting of 2 and a 10K account size, you will be starting with 0.2 lots, and it will automatically add/subtract 0.01 lot for every $100 in profit/loss. This auto lot sizing technique is as simple as it gets, but very effective for automatically compounding your profits, de-compounding your losses, or automatically adjusting for deposits and withdrawals in the account.
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