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# Fixed ratio lot calculator

10000\$   (Equity) >>>>>>>>>100\$ risk

+500\$     10500\$   (Equity) >>>>>>>>>105\$ risk

+1000\$    11000\$   (Equity) >>>>>>>>>110\$ risk

...

and it will continue... Did you notice the problem? Yes, right. It will cause fluctuation on your account because you are risking different numbers of dollars every time. This was the common fixed fraction method that is used by a lot of traders.I have not yet explained the fixed ratio but before that let me tell you the other type of fixed fraction method which is "trading 1 (or any fixed number) contract for every 10000\$ (or any fixed number). This statement can be changed a little bit in Forex market to:"risking 100\$ (or any fixed number) for every 10000\$ (or any fixed number). it means that you can not risk more than 100\$ until you reach to 20000\$. The good news is that the fluctuation does not exist but the bad news is that "Smaller accounts, risking a reasonable percentage on every trade, will have to wait a very long time as a general rule to begin benefiting from money management." Ok, let's talk about fixed ratio trading. The most important thing about this method is Delta. What is delta? A fixed number! For this example let's say delta is 2000 dollars. look at this table

Equity(\$)
Delta (\$)
110000
2000
100
210000+1*2000=12000
2000
2*100=200
312000+2*2000=16000
2000
3*100=300
4 16000+3*2000=220002000 4*100=400

You may have noticed that the number delta palyes a key rule in this method:" the bigger the number the more conservative the trader and the smaller he number the more aggressive the trader." This was a brief explanation of fixed ratio trading and I don't want to tell more about the mathematics and formulas which are used in this method. The good news is that you don't have to know more than this to be able to use this calculator.This calculator can be used only in 5 digits accounts. For more information look at the screenshots.

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