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Risk Management for Expert Advisors — Lot Size & Drawdown Control | GregForex

Keep your Forex EA safe! Learn professional risk management methods for Expert Advisors, including lot sizing, drawdown control, and balance protection. Master automation safety with GregForex tools.

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Risk Management for Expert Advisors — Lot Size & Drawdown Control | GregForex

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  1. Risk Management Secrets for Expert Advisors — Lot Size & Drawdown Control Why Risk Management Is the Heart of Every EA Automation can make your trading consistent, but without proper risk management, even the best Expert Advisor (EA) can fail. Managing lot size, drawdown, and equity exposure is what separates successful algorithmic traders from those who blow accounts. At GregForex.com, our Expert Advisors are designed with built-in risk controls — but traders must still understand how to size positions correctly and set realistic limits. This guide will teach you how to manage risk like a pro, whether you’re running a Scalping EA, Trend Bot, or Grid System. Internal Links for Quick Access: ● Download free risk tools → Free Products ● Affordable EAs with risk control → $5 Forex Tools ● Advanced risk education → Forex Courses You’ll Learn: 1. How to calculate optimal lot sizes for your EA. 2. How to set safe drawdown limits. 3. How to build a long-term EA risk plan for consistency.

  2. Mastering Lot Size and Risk per Trade 1. The Golden Rule: Risk ≤ 2% per Trade Never risk more than 2% of your account on a single trade. For example: ● $1,000 account → max risk per trade = $20 ● $10,000 account → max risk per trade = $200 To calculate lot size: 4. Lot Size = (Account Balance × Risk %) ÷ (Stop Loss × Pip Value) ?Pro Tip: Use GregForex’s Lot Size Calculator to automate this calculation and avoid manual errors. 2. Fixed vs. Dynamic Lot Size ● Fixed Lot: Best for small accounts and beginners. ● Dynamic Lot (based on equity): Adjusts automatically as balance changes — ideal for adaptive systems like Grid EAs or Trend Bots. ?Internal Resource: Most EAs in the Expert Advisors section have adjustable lot size parameters — set them to “Auto” for progressive risk scaling.

  3. 3. Account Leverage & Margin Safety Even with a great EA, leverage can magnify drawdowns. ✅ Use 1:100 or 1:200 for Grid or Martingale systems. ✅ Use 1:500 for Scalping and Intraday systems with strict stops. ?Learn More: Our Forex Courses explain how leverage interacts with EA performance in live conditions. Controlling Drawdown & Protecting Capital 1. What Is Drawdown? Drawdown measures the drop from your account’s peak to its lowest point during trading. Example: If your account grows from $1,000 → $1,200 → drops to $1,050 → drawdown = 12.5%. Keeping drawdown under 25% ensures you stay in the game long enough for recovery. 2. How to Limit Drawdown ● Set a Maximum Daily Loss % in your EA’s input settings (example: 5%). ● Use Equity Protection Mode — available in many GregForex EAs. ● Diversify EAs: one scalper + one trend system + one grid = lower total risk. ?Internal Link: See EAs with built-in equity protection in Expert Advisors.

  4. 3. Combine Manual & Automated Control Even when using EAs, manual oversight matters. ● Close all trades if a series of losses exceeds 20% of balance. ● Review weekly profit/loss and reset settings as needed. ● Use Manual Systems to filter high-risk trades during volatile sessions. 4. Build a Personal Risk Routine Consistency protects your capital: ✅ Weekly EA performance check. ✅ Monthly backtesting to detect drift. ✅ Quarterly optimization updates. You can manage multiple EAs and track their equity drawdowns using the Store Credits system — perfect for scaling multiple low-cost bots. ? Call to Action (CTA) Don’t let automation trade blind. Master lot sizing, protect your capital, and trade smarter with GregForex. ? Explore tested and risk-managed EAs here: https://gregforex.com/product-category/expert-advisors/ Your next level of trading safety starts with knowledge — and the right tools.

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