Multi Risk Manager Pro: How to Use the 8 Money Management Methods in MetaTrader 5 / 4

Multi Risk Manager Pro: How to Use the 8 Money Management Methods in MetaTrader 5 / 4

Choosing the correct position size is a fundamental part of risk management. Even when a trading strategy has clearly defined entry and exit rules, using an unsuitable lot size can expose an account to more risk than intended.

Multi Risk Manager Pro by Mqlexp includes eight position-sizing methods to help traders calculate trade volume according to different money-management approaches.

In this tutorial, we will explain how each method works, when it may be useful, and which settings to review before placing a trade.

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1. Where to Find the Money Management Settings

Open Multi Risk Manager Pro on your MetaTrader 5 / 4 chart and locate the Trade tab.

The active position-sizing method can be selected using the MODE control. Additional parameters are available under:

Setup → Money

The calculated lot size is displayed by the panel. According to the documented interface, the lot field is read-only; the volume is calculated from the selected method and relevant trade parameters rather than entered as an unrestricted manual override.

Before opening a trade, review the entry price, Stop Loss, selected risk method, estimated loss, and available margin.

2. Risk Percentage Based on Balance

This method calculates the trade volume using a percentage of the account balance.

For example, suppose an account has a balance of $10,000 and the selected risk percentage is 1%.

The intended monetary risk is:

$10,000 × 1% = $100

The EA then calculates the volume using the estimated loss per lot between the entry price and the configured Stop Loss, including commission when enabled.

Formula:

Risk amount = Balance × Risk percentage

Estimated lot size = Risk amount ÷ Estimated loss per lot

When is this method useful?

Balance-based sizing is useful for traders who want to define a consistent percentage of their account balance as the starting point for each trade's risk calculation.

Important consideration

The percentage is not a guarantee that the final realized loss will equal the calculated amount. Slippage, gaps, execution conditions, and commissions can affect the result.

3. Risk Percentage Based on Equity

Equity includes the account balance adjusted for floating profit and loss.

This method uses the current equity rather than the balance as the basis for calculating risk.

For example, assume:

• Account balance: $10,000

• Current equity: $9,500

• Risk percentage: 1%

The calculated risk amount is:

$9,500 × 1% = $95

The intended risk amount changes as equity changes.

When is this method useful?

Equity-based sizing may be useful for traders who prefer their position size to reflect the account's current value, including the impact of open positions.

Before using this method, consider how floating gains and losses affect the amount available for new risk.

4. Risk Percentage Based on Free Margin

Free margin represents the margin currently available after accounting for margin already being used.

With this method, the selected risk percentage is applied to free margin.

For example:

• Free margin: $4,000

• Risk percentage: 1%

• Calculated risk amount: $40

The EA then estimates the lot size from the loss per lot at the selected Stop Loss.

When is this method useful?

This approach may suit traders who want their risk calculation to respond to the margin currently available in the account.

Remember that free margin and risk capital are not the same thing. Free margin describes margin availability, not the maximum amount an account can safely afford to lose.

5. Fixed Money Risk

Fixed Money uses a specified monetary amount rather than a percentage.

In the documented settings, the default value for risk_money is 100.00. The currency used depends on the selected risk currency.

For example, if the configured amount is $50, the EA calculates the lot size intended to risk approximately $50 at the selected Stop Loss, subject to the product's risk and broker constraints.

Formula:

Estimated lot size = Fixed risk amount ÷ Estimated loss per lot

When is this method useful?

Fixed Money can be helpful when a trader wants to use a consistent monetary risk amount for a series of trades.

For example, a trader may prefer to plan each trade around a $25 or $50 risk amount rather than a percentage of a changing balance.

Make sure the selected risk currency and any required exchange-rate data are available before trading.

6. Fixed Lot

Fixed Lot uses a configured trade volume rather than calculating the initial lot from a monetary risk target.

The documented default for fixed_lot is 0.10 lots.

For example, selecting 0.10 lots means the calculation starts from that volume, subject to the EA's applicable volume, risk, and margin limits.

When is this method useful?

Fixed Lot may suit traders who use a predetermined volume as part of their trading plan.

However, a fixed volume does not imply a fixed monetary risk. A wider Stop Loss, a different symbol, or a change in contract specifications can materially change the amount at risk.

Important: Multi Risk Manager Pro also applies a maximum-risk-per-trade limit across its sizing methods. This means the final lot can be reduced even when Fixed Lot is selected.

7. Lot per Balance

Lot per Balance calculates volume in increments according to the account balance.

It uses two settings:

• balance_step: the balance amount per increment

• lot_step: the lot amount assigned to each increment

The documented defaults are:

• Balance step: 1,000

• Lot per balance step: 0.01 lots

For example, with those values, a balance of 5,000 produces five increments, corresponding to a calculated starting volume of 0.05 lots before applicable constraints.

This method uses balance increments rather than calculating the initial volume from the Stop Loss distance.

When is this method useful?

Lot per Balance may be useful for traders who prefer a simple balance-to-volume schedule.

However, because the initial calculation is not based on the distance to the Stop Loss, the monetary risk can vary significantly between trades. Review the final risk estimate and applicable maximum-risk limit before executing an order.

8. Fixed Ratio

Fixed Ratio is a position-sizing approach associated with Ryan Jones. It changes the number of trading units according to accumulated profit and a selected delta value.

Multi Risk Manager Pro provides these settings:

• lot: base lot

• delta: profit increment used by the calculation

• start: starting balance; zero means automatic initialization according to the documented settings

The documented defaults are a base lot of 0.01 and a delta of 500.

In simplified terms, the method increases the calculated number of units as the profit measure used by the algorithm grows. The delta determines how much profit is required for the next increase under the formula.

When is this method useful?

Fixed Ratio may interest traders who use a structured growth model and understand how its position-size changes relate to accumulated profit.

It should not be treated as an automatic safety mechanism. Position size can increase as the calculation progresses, and traders should independently define appropriate risk and drawdown limits.

9. Kelly Criterion

The Kelly Criterion is a mathematical approach that estimates a fraction of capital to risk based on an assumed win rate and payoff ratio.

Multi Risk Manager Pro provides three main Kelly settings:

• wr: estimated win rate

• pay: average win divided by average loss

• frac: fraction of the calculated Kelly value to use

The documented defaults are:

• Win rate: 55%

• Average win / average loss: 1.50

• Kelly fraction: 0.50

The simplified Kelly fraction is calculated as:

Kelly fraction = W − (1 − W) / R

Where:

• W is the assumed win rate expressed as a decimal.

• R is the assumed average win-to-average-loss ratio.

For a 55% win rate and a payoff ratio of 1.5:

f = 0.55 − (0.45 / 1.5) = 0.25

Applying half Kelly gives:

0.25 × 0.50 = 0.125, or 12.5%

This example illustrates the theoretical fraction produced by those assumptions, not a recommended risk percentage. The EA also applies its configured risk caps, which can reduce the resulting lot size.

When is this method useful?

Kelly-based sizing may be relevant to traders who have reliable performance statistics and understand the assumptions behind the calculation.

The method is highly sensitive to inaccurate estimates of win rate and payoff ratio. Overestimating strategy performance can lead to excessive position sizing.

Use conservative assumptions and test the method carefully before considering live trading.

10. Understanding the Risk and Margin Limits

Selecting a money-management method does not mean the resulting lot will always be used unchanged.

Multi Risk Manager Pro applies additional constraints to the calculated volume.

Maximum risk per trade

The documented default for max_risk is 5%.

This limit can reduce the calculated volume to keep the estimated loss at the Stop Loss within the configured risk cap. It applies to Fixed Lot as well as the risk-based methods.

The setting reduces the lot; it does not necessarily reject every trade that would otherwise exceed the limit.

Maximum lot size

The EA also applies its configured maximum lot, broker volume maximum, and valid volume step.

These constraints can result in a smaller final volume than the initial calculation.

Minimum lot tolerance

If the calculated volume is below the broker's minimum, the EA evaluates the configured minimum-lot tolerance and applicable risk constraints.

Depending on the method and settings, the trade may be rejected or the minimum lot may be used. Never assume that a small calculated volume will always be rounded up safely.

Margin limit

The documented default for mm_margin is 90%, which limits the share of free margin that the calculation may use.

If the required margin exceeds the configured limit, the lot may be reduced or the trade may be refused because of insufficient free margin.

These limits are safeguards within the calculation process, not guarantees against trading losses.

11. Commission and Risk Currency

Two settings deserve particular attention.

Include commission

The documented default for comm is enabled, with comm set to 7.00 per lot.

The configured commission is included in the estimated loss calculation when the option is enabled. Confirm that the commission value matches your broker's actual commission structure. A mismatch can make the calculated volume too large or too small.

Risk currency

The risk_ccy setting supports:

• Account currency

• USD

• EUR

• GBP

• JPY

Monetary settings and displayed monetary amounts follow the selected risk currency.

When the selected currency differs from the account currency, the EA may need exchange-rate data from available market symbols. If a suitable conversion rate cannot be found, the lot calculation may be refused.

Check the currency setting and Market Watch data before relying on the displayed monetary risk.

12. How to Choose a Method

The following table summarizes the main differences.

Method	Main calculation basis	Key consideration
Risk % Balance	Account balance	Percentage-based risk reference
Risk % Equity	Current equity	Responds to floating P/L
Risk % Free Margin	Free margin	Margin availability is not the same as risk capital
Fixed Money	Monetary risk amount	Requires the correct risk currency
Fixed Lot	Configured lot size	Monetary risk varies with stop distance and symbol
Lot per Balance	Balance increments	Initial volume is not directly based on Stop Loss distance
Fixed Ratio	Profit progression and delta	Volume can increase as the calculation progresses
Kelly Criterion	Win rate and payoff ratio	Sensitive to the accuracy of performance estimates

There is no single method that is best for every trader. The appropriate choice depends on the trading plan, the strategy's performance data, the account, the broker's contract specifications, and the trader's tolerance for risk.

13. A Practical Configuration Checklist

Before placing a live trade, review the following:

1. Select the intended method under MODE.

2. Open Setup → Money and review the related settings.

3. Confirm the risk currency.

4. Check the commission value and whether commission inclusion is enabled.

5. Set a meaningful Stop Loss before evaluating the calculated lot.

6. Review the displayed estimated risk and reward.

7. Confirm the maximum-risk, maximum-lot, minimum-lot, and margin constraints.

8. Check the broker's minimum volume and volume step.

9. Test the same settings on a demo account using the symbols you intend to trade.

10. Review the resulting trades and account history before changing to live trading.

For additional confidence, test different Stop Loss distances and market conditions. A configuration that appears suitable on one symbol may behave differently on another.

Conclusion

Multi Risk Manager Pro provides eight money-management methods, ranging from straightforward percentage-based sizing to Fixed Ratio and Kelly Criterion.

The main advantage of having several methods available is flexibility: traders can choose a calculation model that fits their existing trading plan and then apply the EA's volume and margin constraints.

However, a position-sizing formula cannot make an unprofitable strategy profitable or remove market risk. Accurate settings, realistic assumptions, broker compatibility, and careful testing remain essential.

Risk disclosure: Trading leveraged financial instruments involves substantial risk. The examples in this article are educational illustrations, not personalized financial advice or recommendations to use a particular risk percentage. Always test the EA in a demo environment before relying on it in live trading.