How much leverage do you get?
I have tested a trading strategy and it amounted to a 132.55% profit in a year assuming 2% risk. The strategy works on scalping SPY with a stop loss of anywhere from 60-120 pips (determined by % of daily ATR). I just realised that with 4:1 leverage, the absolute maximum risk per trade is actually only 0.43%, and assuming for safety I only use 2:1 leverage, that’s only about 0.21% risk per trade, which puts the actual profit before taxes at 28.50% with maxed out 4:1 leverage or 13.90% with 2:1 leverage in a whole year. In case it means anything different, I am based in Singapore. How do you get the leverage to risk 0.5%-2% of your account per trade as a scalper? Trading certain instrument classes (futures or CFDs instead of underlying shares) or certain brokers?