A higher lot on a small account or a smaller lot on a big account?

[babyjake1961]

Which is better? The way I see it, if one's trading strategy is sound and robust, a higher drawdown percentage on a small account should be of no concern while a lot less cash is at risk with the same profit potential.

What do you think?

 

[barjon]

Which is better? The way I see it, if one's trading strategy is sound and robust, a higher drawdown percentage on a small account should be of no concern while a lot less cash is at risk with the same profit potential.

What do you think?

First get your "sound and robust" strategy that persists over time and can survive something like the pound's flash crash the other day. You usually only need one of those to wipe out a small account carrying too high a risk - and one will come along, sure as eggs are eggs.

 

[timsk]

. . . and one will come along, sure as eggs are eggs.

. . . sooner or later. Ain't that the truth!

 

[darktone]

It depends on what your broker offers in a sense, and in part your faith that the broker can make good on their offerings. I like the idea of a small acc (relative to your risk capital) in the sense that if SHF, regardless, youre in a position to negotiate a deal.
As for 'robust strategy'. If your trading big size (relative to acc) youre at big risk, period. If youre trading with stop and market orders, ie indicated price or worse, then you cant really define your risk imo.
If your idea of risk management is a full acc. Say 2% over 20 pips from entry to your stop @2580 in GBPUSD the other night, well, your ideas re risk might be redefined when the fills come in.

 

[Aiman]

for risk managment its always beter to use smaller lots on big account

 

[SalvatoreD]

The larger the lot - the greater the risk. The greater the risk, the more you rely on your knowledge or luck. I can never be 100% sure in forex forecasts. For the whole trading experience, I've seen a lot. Therefore it is better to rely on risk management and trading with a smaller volume.