Trading is an art, it is like playing the piano. The mechanics are very simple , but mastery takes a lifetime.
Investment is also an art, you should have some basic knowledge of trading, you should have some deep view of the fund manager's trading logic.
For some grid & martingale strategy, if you only focus on their higher profit in a very short term period, you will be stopped out sooner than later. For example, a "Regulated" social trading website provide a group of martingale strategies on different pairs, all these "accounts" ideally will not be stopped out at the same time. If the investors have not enough trading knowledge, their wealth will be at highly risk.
1. To our experience, we always divide the total investment balance into parts:
30% for Forex, 25% for Commodities, 45% for Stocks.
2. For example, we finally decide to invest $100k in Forex.
We'll use $30k for higher leverage and higher risk to maximize the profit.
However, in this case , the Drawdown maybe higher inevitable.
As long as we trust our trading ability, as long as it could be afforded by the account, then we'll accept the higher Drawdown. Cause it can bring higher return.
The other $70K in Forex investment, we'll well control the risk, only use 1:1 or 1:2 leverage.
( 1:1 leverage = 0.1 lot per trade for every $10k balance )
3. The same method to trade Commodities and Stocks.
As most retail or part time investors only invest no higher than $20k in Forex, we decided to use the strategy of "Higher risk, Higher return" in all the PAMM / MAM accounts.
Lower risk, Lower Return: 50% yearly return, Drawdown 8%
Higher risk, Higher return: Gains beyond 1000%