If you happen to’ve ever run an EA that appeared wonderful… however your account nonetheless acquired crushed…
there’s a excessive probability the issue wasn’t the EA.
It was danger management.
Most retail merchants don’t blow accounts as a result of the technique is horrible.
They blow accounts as a result of they:
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oversize heaps
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stack danger throughout a number of EAs
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improve danger after wins
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panic-change settings in drawdown
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ignore execution prices that amplify losses
This publish is evergreen and sensible:
the way to set lot measurement correctly, cap portfolio drawdown, and run a small EA setup that survives lengthy sufficient to scale.
Key Takeaways (Learn This First)
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The largest EA mistake is stacked danger (a number of EAs = hidden leverage).
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Lot measurement shouldn’t be “one quantity”—it’s a part of a portfolio danger cap.
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A drawdown cap is a system rule, not a sense.
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Dealer execution impacts danger (unfold/slippage modifications actual outcomes).
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Scale solely after danger is secure (Axi Choose).
The Core Drawback: Stacked Danger (Why “Small Danger” Turns into Huge Danger)
Right here’s the lure:
You run 2–5 EAs, every “low danger.”
However you didn’t cap the whole portfolio publicity.
So when market circumstances shift and a number of other programs battle on the identical time, you uncover your actual danger…
…when it’s too late.
Because of this portfolio merchants suppose in a different way:
Step 1: Outline Your Portfolio Drawdown Cap (One Quantity)
Earlier than setting heaps, outline your most acceptable portfolio drawdown.
Examples (simply to indicate the logic):
The bottom line is not the precise proportion.
The bottom line is:
you select a cap and also you respect it.
If you happen to don’t outline a cap, the market defines it for you.
Step 2: Break up Danger Between Engines (Easy Portfolio Logic)
For many merchants, the cleanest means is a small 2-engine portfolio.
Instance construction:
This offers you diversification with out complexity.
Then you definately cut up your portfolio danger between them:
Step 3: Set Lot Dimension So the Portfolio Suits the Cap
Lot sizing ought to reply one query:
If my portfolio hits its worst life like interval, do I survive inside my cap?
Meaning your heaps should be sized primarily based on:
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account measurement
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image volatility
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technique conduct
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portfolio publicity
The error is setting heaps like this:
“0.10 appears wonderful.”
That’s not danger administration. That’s guessing.
Step 4: Hold Danger Steady (Don’t Compound Emotion)
The #1 account killer with EAs is emotional compounding:
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you win → you improve danger too quick
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you lose → you attempt to “make it again”
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you modify settings continuously
A secure system dealer does the alternative:
That is the way you construct a observe report you’ll be able to scale.
Execution Prices Change Your Actual Danger (Dealer Issues)
Many merchants measurement heaps primarily based on backtests…
…then overlook that stay execution modifications the result.
Spreads and slippage can:
That’s why dealer alternative is a part of danger management:
IC Buying and selling (uncooked spreads / low buying and selling price):
https://bit.ly/3KvI9RO
Pepperstone (broad EA compatibility):
https://bit.ly/4ophy72
In case your dealer setting is unstable, your “deliberate danger” shouldn’t be your actual danger.
A Easy, Steady Portfolio You Can Truly Management (MT4/MT5)
If you’d like danger management, begin with a portfolio you’ll be able to perceive.
Two engines, two behaviors:
JPY Development EA ProTrading (74 USD)
MT5: https://www.mql5.com/en/market/product/157484
MT4: https://www.mql5.com/en/market/product/157485
Gold Development Breakout EA ProTrading (74 USD)
MT5: https://www.mql5.com/en/market/product/157465
MT4: https://www.mql5.com/en/market/product/157466
Why this issues for danger management:
In case your setup is easy, you’ll be able to management it.
In case your setup is chaotic, you’ll be able to’t.
The “Drawdown Protocol” (What to Do When Issues Go Dangerous)
Most individuals destroy their system inside drawdown.
A easy protocol:
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don’t change settings weekly
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don’t improve heaps to get well
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assessment execution circumstances
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verify whether or not drawdown is regular vs irregular
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solely alter with proof, not emotion
If you happen to can’t comply with a protocol, automation gained’t prevent.
Scaling Capital: Danger Management First, Then Axi Choose
Scaling is easy:
it multiplies your outcomes.
So scale solely when:
If you wish to scale past your individual capital, evaluate Axi Choose:
https://bit.ly/48TlcAc
Most merchants search for “extra leverage.”
System merchants search for:
extra capital behind secure guidelines.
FAQ (web optimization Increase)
What’s the finest lot measurement for EAs in MT4/MT5?
There is no such thing as a common lot measurement. The right lot measurement is dependent upon your portfolio drawdown cap, account measurement, image volatility, and technique conduct.
Why do I lose cash even with a “good EA”?
Typically due to oversizing, stacked danger throughout a number of EAs, emotional compounding, or execution prices (unfold/slippage).
How do I cap portfolio drawdown with a number of EAs?
Outline a portfolio drawdown cap first, then set heaps so the mixed publicity matches inside that cap.
Does dealer alternative have an effect on EA danger?
Sure. Unfold growth and slippage change actual commerce outcomes and might improve drawdown versus backtest assumptions.
What’s a wiser scaling path than prop agency challenges?
Evaluate Axi Choose in order for you scaling aligned higher with systematic buying and selling:
https://bit.ly/48TlcAc
Fast Hyperlinks
Axi Choose:
https://bit.ly/48TlcAc
IC Buying and selling:
https://bit.ly/3KvI9RO
Pepperstone:
https://bit.ly/4ophy72
JPY Development EA ProTrading
MT5: https://www.mql5.com/en/market/product/157484
MT4: https://www.mql5.com/en/market/product/157485
Gold Development Breakout EA ProTrading
MT5: https://www.mql5.com/en/market/product/157465
MT4: https://www.mql5.com/en/market/product/157466