Comments for https://ctrader.com/products/861

This is one of the most important decisions you will make. The answer depends on your goal, but for almost all traders, especially for Prop Firm challenges, the answer is clear.

Here is a comparison:

1. Fixed Lots
   How it works: You set a fixed value (e.g., 0.5 lots), and the bot uses that size for every single trade, regardless of how much you win or lose.

👎 Disadvantages (Very Dangerous):

Doesn't adapt: If you have a losing streak and your account balance drops, 0.5 lots represents a larger and larger percentage risk, accelerating your drawdown.

Doesn't compound: If you have a winning streak, your percentage risk decreases, slowing down your growth (known as "anti-compounding").

👍 Advantages:

Only useful for very specific initial tests.

1. % of Balance (The Professional Method)
   How it works: You decide to risk a fixed percentage of your equity (e.g., 1%) on every trade. The bot calculates the volume (lots) based on your Stop Loss distance to ensure that if the SL is hit, you only lose 1% of your balance.

👍 Advantages (The Gold Standard):

Automatic Risk Management: It's the only correct way to manage risk.

Anti-Martingale (Protection): If your account balance drops, 1% represents a smaller dollar amount (and thus a smaller lot size). This slows down your drawdown during losing streaks.

Automatic Compounding: If your account grows, 1% represents a larger dollar amount, compounding your profits and accelerating growth safely.

👎 Disadvantages:

Requires the cBot to have this logic built-in (not all bots do).

Our Recommendation
For any kind of serious trading, and especially for Prop Firm challenges, you should always use the % of Balance method. Prop firm rules are based on percentage drawdowns (Max Daily Loss %), so your risk must be as well.

Practical Note (On our Bot): The "Edge Matrix Pro / Bias-Finder Pro" bot we built is currently set to use Fixed Lots (Volume (Lots)).

If you want to apply percentage risk, you would either need to calculate the lot size manually before starting the bot, OR we would need to upgrade the bot to add the % risk calculation feature (based on the "Stop Loss in Pips" parameter).

To discuss how to implement percentage risk calculation or other management strategies, 🚀 Join our Discord for Ready-to-Use Set Files https://discord.gg/8rz9TQfSYE