Allen,
Being completely new, I can’t even say thank you enough for bringing such simple clarity to what might have otherwise been a complex concept to grasp.
Having purchased two EAs prior to finding Petko & EA Trading Academy my EUR/USD Bot had massive gains and massive losses. When I asked the Developer what I could do to correct for the extensive Drawdown I was told it’s just the nature of the market, not to adjust any setting etc.
Lesson Learned: What good is an EA that produces Massive Profits (which is impressive) but on the flip side has Massive Drawdown (which of course the Developer did not highlight in the Sales Material of course)??
This lead to my Darwin performance on DarwinExZero to categorically fail to reach target profits and the desired Investor Capital to start generating performance income to support my family.
Another EA I purchased for Gold did nothing but win Win WIN dozens of trades generating approximately $400 to $600 per trade and I thought this was it I’d hit the jackpot and found a viable EA but just before I moved the EA to a Live Account to trade on real funds with the EA took closed one negative trade that lost over $4,000.
Your explanation of Leverage just demystified much of what I experienced. For that I thank you!
With Gratitude,
Jordyn