🔃Account Size Rules

To ensure TRND Bot operates efficiently and safely, we’ve established specific guidelines regarding the minimum and maximum account balances. These guidelines help balance risk management, leverage needs, and trade size limitations for optimal performance.

Summary

• Minimum Account Balance: $5,000 – Required to ensure appropriate risk management, leverage usage, and trade size.

• Maximum Account Balance: $300,000 – Recommended to maintain the 1:500 leverage level; balances above this amount are subject to lower leverage, which may impact performance.

Minimum Account Size: $5,000

We require a minimum account size of $5,000 for the following reasons:

1. Trade Size Limitations: The smallest trade size allowed by brokers is 0.01 lots. For accounts under $5,000, this minimum trade size would constitute a larger portion of the account balance, which can lead to excessive risk per trade. Smaller accounts would experience amplified equity swings, which could lead to significant losses.

2. Risk Management: TRND Bot’s settings are optimized for accounts of $5,000 and above. This minimum balance allows for the use of our default risk settings, such as the recommended equity stop loss, which protects your account during high volatility.

3. Leverage Requirements: Our trading strategy relies on adequate leverage (1:500) combined with a sufficient account balance to absorb market fluctuations. Accounts below $5,000 may struggle to maintain this balance, increasing the chance of hitting margin calls during volatile periods.

By setting a $5,000 minimum, we aim to provide a safer and more effective trading experience, as this balance allows TRND Bot to operate within its optimal parameters.

Maximum Account Size: $300,000

To maintain TRND Bot’s performance and manage leverage effectively, we recommend capping account sizes at $300,000. Here’s why:

1. Leverage Requirements. TRND Bot operates most effectively with high leverage. A leverage ratio of 1:500 provides the flexibility needed for the algorithm’s trading strategy. Ox Securities, however, has recently introduced dynamic leverage based on account size:

Impact of Dynamic Leverage: Since TRND Bot is optimized for 1:500 leverage, accounts with balances exceeding $300,000 would be subject to reduced leverage. This could impact the algorithm’s performance, limiting its ability to execute trades effectively, and allowing for less room during draw down which could potentially reduce profitability.

Recommendation for Larger Balances: If you wish to invest more than $300,000, we suggest using multiple accounts, each capped at $300,000, to retain the 1:500 leverage for each account. This setup will allow TRND Bot to continue operating as intended while managing larger sums effectively.

By following these guidelines, you help TRND Bot operate within its tested and optimized settings, balancing risk with performance. For any questions about account setup or adjusting your balance, please reach out to our support team.