Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 53% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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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.

Over-leveraging can destroy a trading account even when using a consistently profitable strategy — this simulation shows exactly how.

Even though this strategy has performed consistently well over the past five years, the simulation shows how progressively increasing leverage can ultimately destroy a trading account.

The simulation tests progressively higher leverage levels to pinpoint exactly when drawdown becomes unrecoverable — powerfully demonstrating why over-leveraging is one of the most common and most avoidable causes of trading account failure.

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 53% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 53% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.