The Formula
Points = Balance รท Lot Size
Max Pips = Points รท 10
Example 1
$200 รท 0.02 = 10,000 points
10,000 รท 10 = 1,000 pips
You can handle up to 1,000 pips of drawdown
Example 2
$200 รท 0.04 = 5,000 points
5,000 รท 10 = 500 pips
Doubling lot size = Half the pip tolerance
โ ๏ธ Remember: Larger lot sizes mean higher profit potential but also higher risk. Always manage your position size according to your risk tolerance!