Does Turtler care about Forex?
Posted: Wed Jan 19, 2005 10:52 pm
As a novice, I've been well travelled among many materials seeking answers for the implementing Turtler's rules in Forex. Quit a difficult trip. Fortunitly, I find this forum! Could anybody kindly help me in the following problems?
1. Dollars per point
To caculate dollars per point, you need to set quantity of unit first. For example:
10,000 units EURUSD makes 1pip=$1
If it's 20,000, 1pip=$2
Shoul I always use 10,000 units to caculate the dollars per point?
2. My account is $10,000, ATR=85, 1pip=$1.
Position Size = (1%*$10,000)/(85*$1)= 1.1765
So, I can trade 1 contract. My broker don's use lot or contract, but allows whatever unit you desire to trade. So, if I translate the contract to units, 1 contract=$10,000, or 1 contract=$100,000?
3. If 1 contract=$10,000, I trade a leverage of 50,
First position = 11765*50 = $58,8250
My account is $10,000, it is $500,000 after leverage. The first position is already bigger than my leveraged account.
Is the "contract" already leveraged? How can I apply the fomular correctly according to my own leverage?
Thanks in advance!
1. Dollars per point
To caculate dollars per point, you need to set quantity of unit first. For example:
10,000 units EURUSD makes 1pip=$1
If it's 20,000, 1pip=$2
Shoul I always use 10,000 units to caculate the dollars per point?
2. My account is $10,000, ATR=85, 1pip=$1.
Position Size = (1%*$10,000)/(85*$1)= 1.1765
So, I can trade 1 contract. My broker don's use lot or contract, but allows whatever unit you desire to trade. So, if I translate the contract to units, 1 contract=$10,000, or 1 contract=$100,000?
3. If 1 contract=$10,000, I trade a leverage of 50,
First position = 11765*50 = $58,8250
My account is $10,000, it is $500,000 after leverage. The first position is already bigger than my leveraged account.
Is the "contract" already leveraged? How can I apply the fomular correctly according to my own leverage?
Thanks in advance!