Reducing my risk

As of late no doubt traders have become increasingly aware of the markets biting back a bit more then as in the past. We are indeed in an era which has not been seen before from a global economic standpoint.

Changes around the globe are not relegated to only stock markets and commodities , we are definately seeing the impact on the forex market.  

The above being the case you can manage your losses by reducing your total overall risk.. For example as FAPT users I have reduced my risk by reducing my LotRiskReductor down on the EUR/GBP and increased the percentage of risk per trade on EUR/CHF..  Why? Simply because I see more full stop losses on EUR/GBP (112pips) then on the EUR/CHF and further the stop loss is larger then on the EUR/CHF (54pips).

Another technique is to watch the markets during the NY session.. If you seem extreme amounts of volatility prior to when FAPT trades then perhaps shutting off your Expert Advisor for the day would be prudent.

And last but certainly not least. Limit the amount of trades you have running on your MT4. For example.. If you have capital less then 1K its probably not a good idea for you to be trading more then two scalping pairs ... 

Chris Forex