hello

i created a small Matlab program to show how important it is to adjust the inital bet, depending on your gains of course.

here is the program (very simple):

i based this program on the regular way of trading (using lots from 0.01). and i set 1000€ equals to 1.00 lotCode:trades = 120 capital = 1000 earnings = 1400 loss = 700 tot1 = capital for i = 0 : trades/2-1 tot1 = tot1 + earnings/(trades/2) * floor(tot1/10)/100 tot1 = tot1 - loss/(trades/2) * floor(tot1/10)/100 end

With this program we can have fun computing how much we would have made if we had adjusted the lot with every trade.

for example, if we won 10€, to a total of 1010€, we can adjust the next lot to 1.01.

I insterted bad trades every other trade to keep things realistic.

Let's take an exemple:

we made 1400€ and lost 700€ with 120 trades. We had an initial capital of 1000€

If we don't adjust lot, we would've won 1000+700 = 1700€

but if we had adjusted the lot, we would have won : 1968.9 € !

so almost +270€ ! that's a huge difference!

also we can see that going from 120 trades to 240 we would've won 1988.9€. That's +20€ : not a lot but it counts also!

also for regular trading, i highly encourage getting cent accounts whenever possible (depending also on the highest bid possible, you do nto want to be limited by the max amount you can trade), because it allows to adjust the lot size more precisely, thus winning more.

here is step by step one process:

Start with 1000€

win +10€

capital is 1010€ we can now bet 1.01 lot

next we lose : -5 * 1.01

capital is 1004.95

win + 10 * 1.00

capital is 1014.95

we lose : -5 * 1.01

capital is 1009.9

win + 10 * 1.00 (not 1.01 yet!)

capital is 1019.9

we lose : -5 * 1.01

capital is 1014.85

win + 10 * 1.01 (finally!)

capital is 1024.85

etc...

the start may seems like we have less money (because the lot increment falls every time on the lose and the win has no increment yet), but in the end it is very profitable of course.

so to maximize gains, you have to constantly compute the most efficient Lot to trade.

EDITED

Jeff