His trade size: 5 pips = 1%
1% of $1,000 is $10 and $10 / 5 pips is 2 mini lots.
His risk level is based on the size of his stop.
XXX/USD: $200 per mini = cap account size.
He is trading 2 mini lots so he is going to keep his account at $400 and pocket the rest every Friday to mock pay his bills.
Once he is certain that he can trade for a living then he will include non USD pairs.
XXX/TSE: $400 per mini = maximum account size.
Now he moves to a level where he can pay his bills for real
He is trading 2 mini lots so he is going to bring his account balance to $800.
Once he reaches $8,000 he would move to 2 standard lots.
Once he reaches $30,000 then he would move to 5 standards reducing his position size to 20 pips = 1%.
Here I would cash checks for anything over $30,000 every Friday.
Once he has over $1,000,000 in his bank account after taxes then he can decide if he wants to bring his account to $300,000 and trade a position size of $5,000,000.
Personally I prefer 20 pips = 1% from the get go.
$300 trade 5 micro (default balance = $1,000)
$3,000 trade 5 mini (default balance = $10,000)
$30,000 trade 5 standard (default balance = $100,000)
$300,000 trade 5 full (default balance = $1,000,000)
$300, $3000, $30000, & $300000 are cap sizes so he would cash out anything over these amounts on Friday if he wished to remain at that level.
THERE IS NO SIZING DOWN!
Be sure that you want to trade at the next higher level because it is do or die.
TheRumpledOne wrote:$1,000 is your default balance
For every mini in your account you are going to have $200 in your account by Friday morning.
For this level of trading that means that your account balance is at least $400 on Friday morning.
Do you REALLY mean the NET PROFIT is $400 and the account balance is $1,400?