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Copy Tip of the Week – How to Manage your Risk Using MMC

[fa icon="calendar"] June 14, 2019 at 4:55 PM / by Fullerton Markets

MMC (Money Management Correlation) is an indicator under “Portfolio” which shows conformity of your copying settings for a specific trading strategy to Money Management rules defined by a strategy provider. 

Simply said, MMC gives you the percentage of risk you are taking based on the settings and lot size you set. Any value more than 100% is putting the account at risk which could cause a forced closing of position or a stop out.

There are two ways to reduce the percentage risk in MMC:

  1. Reduce the lot size traded under the settings
  2. Fund the trading account

All in all, we should adjust the MMC percentage such that all your strategy providers’ accounts sum up to 100%. For example: Followers following providers 1, 2 and 3 MMC should be 33.3% each to make up 100%. 

 

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Fullerton Markets Research Team

Your Committed Trading Partner


Topics: 2019, Copy Tip


Fullerton Markets