In this video I wanted to talk about something I call a “Risk Multiplier”. This is the German version of the current trading framework for Forex. From time to time people ask me what is a framework good for? Well, basically you can think of it as a set of rules or a playing field. You know the difference between a baseball field and a football field and perhaps a tennis court. Each playing field is little bit different because the goals of the game are a little bit different and the Forex Framework is my optimal playing field for trading Forex but for now let’s focus on this risk multiplier here. It has a standard value of 1.05, I will now change that to 0.8 – this is a dynamic value that can be changed without changing anything in the code. Now let’s select the year 2016 and the currency pair Australian Dollar against the Canadian Dollar and start a test, you will see this graphical representation here, it is very flat for some time and now the period for back-testing is finished. We click on the “Results” page and we made a total net profit of 3 Dollars and 76 Cents, now you will say this isn’t worth the effort and the risk, so let’s see what happens if we right click and we set the default settings again. Now the risk multiplier is 1.05. Let’s start another test here! It looks similar but here it starts to change and now you can see that we have much larger draw-downs here because the risk is higher but that’s also true for the profit. Look at this! When you have a balance that is very high and you see the equity going down, that’s probably the moment when you want to get out of the system. It looks like a good system when you see it on the demo account, but believe me when you are trading with real money this is a whole different game! Okay. We are reaching November now and now our back-test has finished, let’s click on the “Results” and we made 189 233 Dollars and 71 Cents and we only changed one thing; the risk multiplier. Let’s change the currency pair here, start another test, now we have a result, we made a total net profit of 133 dollars and 30 Cents. Set the default risk, start the next test. This time is the total net profit of 487 Dollars and 86 Cents. Let’s increase the risk multiplier to 1.2, start another test and see what happens! This time we made a total net profit of 105 491 Dollars and 34 Cents, so that’s a completely different game. We didn’t change anything in the code, we didn’t change the entry, and all we changed was this risk multiplier. This is how it looks like in the current German version of the Trading Framework I am testing, so you could use this code in your own trading framework and if you don’t know how to code something like this you can go to the MQL5 course and learn how to do it yourself or visit the website: forextradingframework.com but remember if you have a balance that is above 400 000 and you see a drawdown that’s going below 250 000 and it’s real money that might give you a very hard time and a few sleepless nights. Not many people can do that but if you are one of the few who can, it’s possible to earn a good amount of money with this.