1. Darwinex Docs
  2. Algorithmic Trading
  3. From Trading as a Hobby, to Trading as a Profession

An over-leveraging example that will shock you | Real-world Trading

This episode features a simulation of the leverage-risk relationship, using real data from the trading track record of one of his own trading strategies.

Despite the fact that this strategy has performed consistently well since its inception 5 years ago, the simulation will illustrate the effects of increasing leverage, to a point where eventually the trading account is destroyed.

This will be a real eye-opener to many people in terms of just how dangerous over-leveraging really is.