Are Z1/2/12 still promising with the maximum leverages for retail traders due to the new ESMA regulations?

i think the leverage is not a problem for the strategies,but the margin for opening several trades could be a huge problem. I dont know how to handle this.

The best way to avoid ESMA is opening an account in a non-european broker, for example Dukascopy Bank or GlobalPrime.

I haven't tested the impact of ESMA in Z1/2/12 yet, but it'll surely reduce the number of possible open positions.

Hi jcl. I would appreciate your thoughts on this ESMA change. I'm told it applies to anyone with a European broker, even if they themselves are not in Europe...

Specifically,

a) The impact on the Z systems.

b) If Zorro will be able to handle the margin problem, or if each of us will have to individually code this in every strategy.

Thanks.

Didn't your broker already announce the changes to you? Then I guess you are not affected, those changes have to be realized till 1st of next month and the (regulated) brokers I trade with sent at least 3 mails the last week concerning the changes.

Hi Sphin. Yes, I have mails. And would appreciate jcl's insights as to the impact on Zorro in general and the Z Systems in particular.

I.e., what will happen if one doesn't make a change...

Or should one absolutely make a change?! I.e., stop trading with European brokers immediately because the Z Systems and Zorro's performance is compromised by these changes?

Thanks.

Smaller leverage means smaller profit.

Yes. But what about the margin issue? One broker's example is an account with $2000 balance. Open a trade that requires $1000 margin. If account equity falls to $500, all positions are closed. Do the Z Systems and Zorro handle this?

Thanks.

Yes, that's why you'll get smaller profit.

Great! Then, how do I set this up for Testing?

For ESMA impact #1, I can adjust AssetsFix.csv to account for the lower leverage.

What do I do for ESMA impact #2 (the 50% margin "stop")? The latest word I have from FXCM is that if account equity falls below 50% of the total margin of all trades, opening new trades is prevented until equity returns above. What flag/setting/whatever do I set to say Test in ESMA mode?

Thanks.