Why 5000 in a Micro over 1 or 2000?

I have recently heard ... 2000 on a micro account in my opinion is-able but 4-5000 would be better.

(account equity x risk%)/$ value of stop loss = position size (n of lots)

I've made a chart incrementing all factors relating to exploit ...From 100,00 to 5,000.. 00 in 40, 60, 80 and 100 pips each. it looks like this:

60 the laboratory sample
Account size = $ 1000
Percent risk = 1%
Amount risked = $ 1000 * 01 = $ 10
Stop the laboratory sample size = 60
PIP value = 01 (1 cent (s) on a nano account)
Total pip value = 60 pip stop * 01 = $ 60.
Position size = $ 10/60 = 16.66 nano lots (round down to 16)
Resulting pip value =. 17 (of 17 cents per pip)
Resulting leverage = $ 1,667 position size/$ 1,000 account size = 1.67

I also used this Money Management Calculator in support of the project.

My biggest concern is the daily average pip swings in any given pair. I look at AUS USD or AUS JPY, but the song remains the same. in deciding how to about 60-80 pip swings short/long, what other factors in addition to comfort come into play in have a 5000 micro/nano account over a 1000 or 2000? I can see that the pip amount Repeat at different levels, but is it primarily a comfort level or why is 5000 a magic number?

Last edited by Bluehighway; Oct 19, 2010 18: 13. reason: Add link

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