Tips & Tricks
n.1 - NFA Set Risk: € 8 max risk x € 100 base invested. (€ 16 x € 100 if you work with leverage x2)
As I explained, the maximum risk of NFA is set at 8%, that means a fixed value of € 80 x € 1000 initial balance. Will be absolutely wrong to set a lower risk: for ex. 3%, 5% or 6.18%, because you'll work against the standard strategy parameters, with high losing risk.
At the same, have no-sense set a bigger risk (for ex. 25%). If this ever happened, it will not be caused by NFA strategy, but by external factor as very high volatility, fat finger, etc., etc.
Protecting yourself from this, with a suitable and logical risk set is even more important!
To know and to understand it’s essential for an investor.
To understand how much money he is willing to lose. How much he wants to earn. How to maximize profit, compared to an acceptable and clear risk.
Above all, clearly identified monetary risk, it helps us, for ex., to understand if to use a leverage x2, but with a maximum risk of "only" 16€ x 100€ invested, may offer more interesting opportunities or not.