Risk Management

Risk Management is an essential tool for safeguarding the traders' funds. ArgusFX provides you with such tool, thus protecting your funds from over-exposure (Stop Loss type) when trading the markets using any particular strategy. 

The idea of our tool is to create a safeguarded non-trading account where you can place your funds that you want to secure, and still maintain the margin power of your portfolio. 

Our Risk Management tool safeguards your account

The protected amount will be credited to your trading account and safeguarded in a non-trading account.

In the scenario that the negative P&L is equal or greater (in absolute numbers) than 10% of the used margin minus the available balance, then your credit will be automatically withdrawn. The stop-out procedure will start closing the losing positions of the portfolio until the margin levels return to normal.

Furthermore, we also provide a custom developed indicator that shows the Credit-out P&L, and the remaining loss for the credit out, based on your current P&L and your portfolios margin. You can access our custom indicator, provided that you have downloaded the MT4 Trading Terminal.

Our Risk Management tool can be used on accounts with a minimum size of 10,000 EUR/USD or equivalent currencies.

Example:

Trader A plans to use a managed account strategy but risks 30% of his or her total funds.  The picture of the account would be as follows:

  • Account (A) with 3,000 as balance, 30% of portfolio and 7,000 as credit (reflecting safe funds of account B)

  • Safeguarded non-tradable, Sub-account (B) with 7,000

Account A started trading with a balance of 3,000, credit 7,000, Margin 1,500, and P&L of account +1000.

The formula used for withdrawing the credit from the trading account is:

Negative P&L of Account ≥ (10% of Margin) - Balance: When the condition is met, and the loss of the account is equal or greater than the 10% of the used Margin subtracted from the available balance at any given point in time, the credit is withdrawn and the stop out procedures apply.

The credit out indicator will be showing Credit-out P&L 150 (10% of margin) - 3000 (available balance)= -2,850. The remaining loss for Credit-out would be -3,850, which is the 2850 plus 1,000 profit (in absolute numbers). 

If the account P&L was -1,000 (loss), the credit out indicator will be showing Credit-out P&L 150 (10% of margin) - 3000 (available balance)= -2,850. Remaining loss for Credit-out would be -1,850, which is the 2,850 (absolute number) minus the loss already incurred, 1000 (absolute number.)

Risk Percentage:

Account (A) - Trading

Balance:

Credit:

Equity:

Account (B) - Safeguard

Safe equity:

Apply for Risk Management Account Risk Warning: Forex and CFDs are leveraged products and involve a high level of risk.

Risk Management info

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Apply for Risk Management Account Risk Warning: Forex and CFDs are leveraged products and involve a high level of risk.

Credit Out Indicator

Download Now! Note: Unzip and place it in your indicators folder

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