The Signalator Money Management or the Signalator Recommended Deposits page is the section totally devoted to the proper money allocation and the risk management. Trading signals we provide are the instruments. The money management is the way you use these instruments. Comparing this situation to a hammer and nails, you may do everything properly or everything may be ruined. The same totally applies to any kind of trading in general and to trading with the Signalator forex signals in particular.
These rules and recommendations are for the informational purposes only. There is no minimum required balance amount to use Signalator services. You are not obliged to follow the offered levels or this information is not a piece of an advice. This is simply the Signalator point of view on the risk assessment matter. However, following these simple rules will help you benefit the most from the services our company provides.
Three risk types of trading
Drawdown as low as 10%
Personal investment plan
Low leverage trading
Stable equity growth
The Three Types of Risk Management
The trading always involves both profits and losses. Money management itself may either ruin a good profitable trading or benefit from a moderate results system. The Signalator slogan is "Make Money Not Trades" which means we are looking for the profits rather than for the trading process. All our signals use risk-reward ratio above 1. Most signals have risk-reward ratio between 2 and 3. That means we are looking for a profit which 2-3 times higher than a risking amount for each particular trade.
To make profits we have to maximize profits and to minimize losses. Losses are the part of the trading process. If you can't withstand a certain number of losses, you will be out of the market when it is a profit period. The consecutive losses or the maximum equity decrease is called the drawdown. Signalator prefers to use the fixed trading amount rule: you decide which type of trading you choose and open the calculated amount of lots. Please note: each trade signal and signals set is offered with a currently available maximum drawdown level. This is the maximum reduction of a balance which is considered accepted from the trading process point of view. It may happen you will face such a reduction right after you begin your subscription.
The following table describes the three approaches we use within Signalator money management system. Depending on your requirements and expectations, consider one type of trading and try to maintain it whilst you trade. Risky type is suitable for active traders who are looking for big and fast profits. On the contrary the Safe type is suitable for clients looking for stable growth without sharp movements of equity.
Max Drawdown Level
Highest profits in percentage accompanied with the highest possible levels of drawdown. The best option for high profit periods.
The balanced risk trading is the golden mean. You will be getting high enough relative profits with the moderate drawdown levels. Suitable for most traders. Signalator uses this type by default.
The most secure option. The best option for traders using personal and corporate savings as a trading deposit. The lowest drawdown.
The Recommended Deposit Levels
Now that you are familiar with the offered types of the money and risk management used by Signalator, you may check what are the deposit requirements for your chosen trading signals or which signals suit you best based on the deposit amount you have. You will find the table showing the all available trading signals with the three levels of the risk management. For more sophisticated approach, please, use the Signalator Investment Calculator to find out the required deposit amount, maximum drawdown and expected profit of chosen signals.
Please note: the following figures are approximate and are based on our trading expectations for each of the mentioned trading instrument.
Q. What is the minimum deposit to trade with the Signalator signals?
A. Basically, there are no any requirements. You can trade with our signals with any deposit amount (even on a demo account). The recommended deposit levels are to be followed if you would like to to increase your efficiency of the trading and to lower risks.
Q. What do standard, mini and micro lots mean?
A. Every time you open a trade you buy / sell a certain amount of a currency. In case of GBPUSD currency pair you buy GBP. The Standard lot means you buy 100,000 units. The Mini lot is 10,000 units and the Micro lot is 1,000 units.
Q. What will happen if I don't follow Signalator recommended deposit levels?
A. If you open too many lots, even a small loss may ruin your deposit. On average we use $1,500 deposit for each 0.1 Standard lot. Which means you can withstand 1,400 pips drawdown for a pair to stay on the market. If you increase the trading size by 10 times, the loss of 150 pips will cut your account totally.
Q. What is a drawdown? Why it happens?
A. Drawdown is the maximum decrease of a capital during the trading. For example, you are trading and your account has a value of $15,000. If under any circumstances (loss trades, combination of profit and loss trades) your account decreases to $14,000 then the Drawdown is $1,000 or 6,6% (1,000 / 15,000).