max money at risk per trade
emforex:
why people don't take into account the leverage ?
why people don't take into account the leverage ?
You are confusing max leverage with actual leverage. If your broker says u can have 1:100 leverage it means up to 1:100 leverage. True leverage depends on your balance and your position's total lot size.
True risk is the initial stop loss times $ amount of a point. Choose your opening price. Choose your SL per the market. Control risk by limiting the lot size.
//+------------------------------------------------------------------+ //| Lot size computation. | //+------------------------------------------------------------------+ //double atRisk; // Export to Comment and Init. double LotSize(double SL_points, bool modifying = false) { /* This function computes the lot size for a trade. * Explicit inputs are SL relative to bid/ask (E.G. SL=30*points,) and if * returned lot size will be used in a new order or be used to modify an * pending order (trade count-1.) Implicit inputs are the MM mode, the MM * multiplier and currently filled or pending trade count (used to reduce * available balance.) Mode, multiplier, adjusted account balance determined * the maximum dollar risk allowed. StopLoss determines the maximum dollar * risk possible per lot. Lots=maxRisk/maxRiskPerLot **************************************************************************/ double ab = AccountBalance(); switch(MMMode_F0M1G2) { case MMMODE_FIXED: atRisk = MMMultplier; break; case MMMODE_MODERATE: // See https://www.mql5.com/en/articles/1526 Fallacies, Part 1: Money // Management is Secondary and Not Very Important. atRisk = MathSqrt(MMMultplier * ab)/ab; // % used/trade ~const. atRisk = MathSqrt(MMMultplier * ab * MathPow( 1 - atRisk, OrdersTotal()-modifying )); break; case MMMODE_GEOMETRICAL: atRisk = MMMultplier * ab * MathPow(1 - MMMultplier, OrdersTotal()-modifying); break; } double maxLossPerLot = SL_points/Point * MarketInfo( Symbol(), MODE_TICKVALUE ); // IBFX demo/mini EURUSD TICKVALUE=0.1 MAXLOT=50 LOTSIZE=10,000 // In tester I had a sale: open=1.35883 close=1.35736 (0.00147) // gain$=97.32/6.62 lots/147 points=$0.10/point or $1.00/pip. // IBFX demo/standard EURUSD TICKVALUE=1.0 MAXLOT=50 LOTSIZE=100,000 // $1.00/point or $10.00/pip. double LotStep = MarketInfo( Symbol(), MODE_LOTSTEP ), // atRisk / maxLossPerLot = number of lots wanted. Must be rounded/truncated // to nearest lotStep size. // // However, the broker doesn't care about the atRisk/account balance. They // care about margin. margin used=lots used*marginPerLot and that must be // less than free margin available. marginFree = AccountFreeMargin() * 0.90, // Allow some slack for PAIRS marginPerLot = MarketInfo( Symbol(), MODE_MARGINREQUIRED ), // So I use, the lesser of either. // I don't use MODE_MAXLOT as OpenNow handles that. size = MathFloor( MathMin ( marginFree / marginPerLot , atRisk / maxLossPerLot ) / LotStep )*LotStep; // truncate if (size < MarketInfo( Symbol(), MODE_MINLOT )) { // Multiple orders -> no free margin -> LotSize(SL=4.1)=0 // [risk=9.48USD/40.80, margin=10.62/1334.48, MMM=1x1, coat=0] // 0.23 0.007 Print( "LotSize(SL=", DoubleToStr(SL_points/pips2dbl, Digits.pips), ")=", size, " [risk=", atRisk, AccountCurrency(), "/", maxLossPerLot, ", margin=", marginFree, "/", marginPerLot, ", MMM=", MMMode_F0M1G2, "x", MMMultplier, ", coat=", OrdersTotal(), // Count Of active trades "]" ); return(0.0); // Risk limit. } atRisk = size * maxLossPerLot; // Export for Comment return(size); } // LotSize
whroeder1:
True risk is the initial stop loss times $ amount of a point. Choose your opening price. Choose your SL per the market. Control risk by limiting the lot size.
True risk is the initial stop loss times $ amount of a point. Choose your opening price. Choose your SL per the market. Control risk by limiting the lot size.
Hello Whroeder1, is this for MQL5? I have been looking for a code for my robots on MQL5. I'm not sure how to include it on my code.
I need to use size as the lot size for the order.
And, SL_points as the stop loss? In my case the stop loss is calculated on each trade based on ATR and a factor.
Thanks!
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I want to write a script to limit the money at risk per trade. I want to limit my risk at n% of my equity. I found some scripts in the forum but still have some questions..
I found:
lot = NormalizeDouble(AccountFreeMargin() * Risk * 0.01 * MarketInfo(Symbol(), MODE_TICKSIZE), 2);//last 2 changes to 1 depending on account type
also
lotsize = NormalizeDouble(AccountFreeMargin()*(MaximumPercentageatRisk/100)/1000.0,2); //last 2 changes to 1 depending on account type
Why the difference between those two? why people don't take into account the leverage ?
Shouldn't it be something like freemargin * % risk * leverage = max to invest and then obtain the lot size... (How? I don't know)
can someone please help? I am really confused.