Discussion of article "Functions for Money Management in an Expert Advisor" - page 2
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on the EURUSD pair on your demo... with available funds of 10 000 I can't open with lot 10... why? why? and how to calculate the maximum possible lot based on the available funds. thanks.
Need 12,900 at EURUSD=1.29000 to BUY.
Key : https://www.mql5.com/en/articles/1453
Need 12,900 at EURUSD=1.29000 for BUY.
Key : https://www.mql5.com/en/articles/1453
Maybe we should have titled the article something like this:"Obtaining information for capital management functions..." or something like that? Because no examples of functions that would actually "manage capital" could be found.
Maybe we should have titled the article something like this:"Obtaining information for capital management functions..." or something like that? Because I couldn't find any examples of functions that would actually "manage capital".
It is too long.
Otherwise, the title of the article does not correspond to its content.
Interesting:
Соответствует. Для любителей полного соответствия можно озаглавить так "Основы управления капиталом в экспертах"...
Can we not start an argument on nothing? I repeat: "no examples of functions that would actually "manage capital" could be found". And you haven't given any. And this despite the fact that the article is called " Capital Management Functions".
Besides, no "fundamentals of capital management" that you wrote about are given in the article either. It actually talks about practical ways of obtaining information for further creation of the user's own "capital management functions", but not about logic or methods of capital management.
However, I do not claim to be the truth in the last instance :) If users believe that the codes from the article really manage capital, then so be it :)
Can we not start an argument on nothing? I repeat: "no examples of functions that would actually "manage capital" could be found". And you haven't given any. And this is despite the fact that the article is called "Capital Management Functions".
Besides, no "fundamentals of capital management" that you wrote about are given in the article either. It actually talks about the ways of obtaining information for the user to create his own "capital management functions", but not about the logic or methodology of capital management.
However, I don't claim to be the truth in the last instance at all :) If users believe that the codes from the article really manage capital, then so be it :)
Agree that without using the functions given in the article, money management will not work.
Hi, Rosh
Thanks greatly for your article, and all of your other articles - advice and guidance for us MQL/C++ n00bs is hugely appreciated. Spasiba.
I am currently working on my own Money Management code, to enforce trading discipline and remove emotionally damaging fear and greed.
My philosophy is a little different in terms of selecting lot size - everything begins and ends with Money Management (MM).
If I have an account balance of (e.g.) 10,000, and a 'maximum at risk per trade philosophy' of 5% then the most I can risk on one position is 500.
If I determine that my stop is 20 pips (because of Bollinger Lower or ATR, or whatever [adjusted for 'its gone bad, get out']) , then my lot size is 500/20, giving a 25 pip investment.
If Target (Limit/TKP) and 'Crash out' (Stop Loss/STP) are always in pips, it makes the calculation easier.
If the signal (buy/sell) is not strong, then adjust the risk downwards. If stronger (ADX 50+, or rising maybe), then increase the money at risk.
Allowing for leverage gives a formula of:
Lots=(Account*0.05)/Leverage/STP)*(RISKADJ); // Where RISKADJ is 1.00 normally, 0.50 for a 'poorer, riskier' trade, and maybe 2.0 for a 'green light' trade.
In short, this philosophy asks 'how many lots is this trade worth?' rather than 'have I the margin for a 2.0 lot trade?'.
Mathmatically, it is not too different from your code, but the philosophy begins and ends with managing risk and exposure, and protecting the money in the account.
Buy/sell signals have tens of thousands of combinations, which provide an endless study for all of us.
Money management has very few parameters, and just one key parameter - 'how much of my account will I risk in this trade?'
Hope this makes sense, and thanks again for everything.
Todge.