Understanding and managing your trade size is crucial for consistent trading performance at Next Step Funded. Here’s a straightforward guide to calculating and adhering to your lot size trade range.
Calculating Your Average Trade Size:
1. Total Lots Traded: Start by summing up all lots traded in your transactions (excluding any pending orders).
2. Market Order Trades: Divide the total lots traded by the number of market order trades you've executed.
This calculation yields your average trade size, which is essential for determining your trade range.
Determining Your Trade Range:
With your average trade size in hand, you can establish your trade range as follows:
Maximum Value: Add 100% of your average trade size to itself to find the upper limit of your trade range.
Minimum Value: Subtract 75% from your average trade size to determine the lower limit.
Example: If your average trade size is 10 lots, your trade range would span from 2.5 lots (minimum) to 20 lots (maximum). Trades within this range are considered consistent with your average trade size, promoting a balanced trading strategy.
Important:
Trades outside the specified range are classified as "lucky trades" and will not be counted towards the minimum trading days requirement.
Additionally, any profit generated from trades outside this range will be considered invalid and subtracted from your payout amount. This policy ensures fairness and adherence to risk management practices.