Forex Robots: FAP Turbo Review of Trade Risks

First of all, lot size is normally difficult to calculate due to the fact many people just aren't conscious of these indicators when they determine to turn off FAP Turbo?s cash management program.  Their money management program does do a decent job, when it?s turned on, in determining lot size.  It utilizes your offered margin and account balance to do this.  But, you could wish to turn this program off to ensure that you can manually set the lot size to fit your wants.What's a good deal size, although?  Nicely, 1 full lot size in Forex will be the equivalent of 100,000 units of the underlying currency.  For that reason, 1 lot of USD/CAD is the equivalent of US$100,000. 

Thereafter, the quantity of profit or loss from a buy is directly related to the number of pips the underlying moved and also the lot size. As an example, for a 1.0 lot, you might be trading a full lot of $10.00 per pip, or $100,000.00 of the underlying currency.  As a result, if you manually set the lot size inside a Forex automated method, such as FAP Turbo, each trade will probably be opened with the precise very same lot size, even if the balance of your account is lower in accordance with any losses which you could have had.  This is why FAP Turbo instituted their Lot Risk Reductor, so that you won?t lose your shirt.FAP Turbo?s Scalper Lot Risk Reductor (LRR) works cooperatively using the money management portion of the software so, if cash management is turned off, the LRR will not work.  This LRR is used to calculate what size the lot must be opened at for a given trade. 

As an example, should you set FAP Turbo?s LRR to five.0, you're indicating to FAP Turbo that 5% of your obtainable margin may be employed to open every single trade.  Therefore, the very first trade will use 5% of your obtainable margin to open up a trade.  Thereafter, the subsequent trades is going to be opened at 5% of your remaining margin, even if there?s a loss.  Lot sizing becomes dynamic in nature when you use FAP Turbo?s LRR.  It ends up being calculated at the time the trade is opened.  The calculation will take into account your margin presently accessible and will, in addition, be affected by any other at the moment open trades.  In effect, FAP Turbo has, when their cash management program is turned on, instituted a built-in Lot Risk Reductor remedy to ensure that you'll be able to only open up trades for a particular quantity of your remaining margin balance.  If you do not have the method turned on, although, you need to maintain track of your balance closely for trading.