Forex risk management is important!
EArobot forex advisor say 5 tips for managing risk in Forex trading are:
1. Use Astute Personal Financial Management
2. Use Notional Capital
3. Know the Historical Probabilities of Your Trading Strategy
4. Size Your Positions Accurately
5. Use Robust Trade Management
Our EArobot Big Cash V.2 Big Cash EA Fully automated robot for forex trading with smart features , this EA work with Scalping strategy , we added amazing feature like our custom risk managment and sensitive Trend sensor.
Here EArobot have few kinds of risk that your portfolio or trade may be subject to:
1. Market Risk: the risk that the market will perform differently to how you expect. This is the most common risk in trading.
2. Counter-party Risk: the risk that your broker will default or fail to return your funds (this is a real risk, and that is why it is best to use notional funding).
3. Liquidity Risk: the risk that you will not be able to open or close trades when you desire.
4. Model Risk: the risk that your trading model or your analysis model fails to accurately represent reality and will lead you into a series of trades or decisions that lead to losses.
5. Technological Risk: the risk that your computer, internet access, or anything IT-related will fail.
Forex expert advisor risk management
comprises individual actions that allow traders to protect against the downside of a trade. More risk means higher chance of sizeable returns – but also a greater chance of significant losses.
EArobot Advisor Ten Tips for Forex Risk Management
Educate yourself about Forex risk and trading.
Use a stop loss.
Use a take profit to secure your profits.
Do not risk more than you can afford to lose.
Limit your use of leverage.
Have realistic profit expectations.
Have a Forex trading plan.
Prepare for the worst.