Position sizing is used to achieve objectives and we generally will not risk more than 3 % of the total portfolio size in any one trade. We may increase our risk exposure by profit we have earn from that month.
What is a ‘High-Water Mark’?
A high-water mark is the highest peak in value that an investment fund or account has reached.The high-water mark ensures the manager does not get paid large sums for poor performance. If the manager loses money over a period, he must get the fund above the high-water mark before receiving a performance fee from the assets under management
Assume you are investing $5000 into the account, and during its first month, the menaleefx earns a 20% return. your e Forex Account balance is $6000. You are owing a 40% fee on this $1,000 gain, which equates to $400.