Using the 4XLots Web Service: A tool for risk management in forex trading Patrick Ingle Author
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There are many strategies available to both the beginner and experience Forex trader, but most of these strategies fail because when the developer built the strategy they left off or did not put into much effort any risk management but instead concentrating solely on entering and exit market. These strategies could be successful if risk management was part of the plan? This is why the Risk Management Web Service was developed. There are basically two types of risk management, the use of stop losses and the control of the lot size. This web service uses the latter. When using stop losses you are setting yourself up to fail every time. Forex is a very volatile market that fluctuates and cycles very rapidly, so if you define your lot size so you can stay in the trade until the market recovers, you become a winner most of the time. Most importantly, the computation of the lot size should be scalable, that is as the balance increases, the lot size should also increase otherwise you are missing out on loss profits by not maintaining a constant risk.


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