To better understand the power of leverage, use my simple forex profit calculator below.
All you need is to know the average amount of pips made per month and the leverage you want to use.
Average monthly pips: Leverage:
=
% per month
Lets say, on average, the ratio between profit and drawdown is 1:1, possibly higher towards profit.
If, for example, you want to achieve 10% per month, you need to be fine with drawdown of 10%
or even more during volatile periods. So set your risk accordingly to your personal preference.
