Account Equity / Available Margin / Account balance?
I'm not following you on DeltaValuePerLot?
(My thoughts, not sure if on that hyperlink you're saying the same thing?) OrderLots is based upon what the pip value is of OrderOpenPrice - OrderStopLoss and the tickvalue of the given instrument? Once you have that, then you need to identify what level of your account balance / equity and free margin you're prepared to risk on that given trade? Couple that with the most likely event of "max" number of open trades, then you have a dilemma of understanding how much you're wanting to risk across the board and the rules applied?
For example (Correct me if I am wrong!):
double risk_amount; if( AccountBalance() > AccountEquity() || AccountBalance() == AccountEquity() ) { risk_amount = (( AccountBalance() + AccountEquity() ) / 2 ) * RiskPercent / 100; //<<- risk percent is just "2" } if( AccountEquity() > AccountBalance() ) { risk_amount = (( AccountEquity() + AccountBalance() + AccountFreeMargin() ) / 3 ) * RiskPercent / 100; } //////////////////////////////////////////////////////////////////////////////////////////////////////////////////// double Lot_Step = MarketInfo(Symbol(), MODE_LOTSTEP); double ts = MarketInfo(Symbol(), MODE_TICKSIZE); double tv = MarketInfo(Symbol(), MODE_TICKVALUE); double minlot = MarketInfo(Symbol(), MODE_MINLOT); //<<-- Buy Pending Order lot calculations -->>\\ double loss_for_1_lot = pips_to_bsl / ts * tv ; // << -- "pips_to_bsl" is OrderOpenPrice - OrderStopLoss. double LotSize_Buy = MathFloor( risk_amount / loss_for_1_lot/ Lot_Step) * Lot_Step ;
I'm I off the mark with what I am saying above? I've had a read through your MQL4 file and some of the threads in conjunction with your findings, but wanted to double check with you? (sorry if I am missing something...)
I'm wanting to understand how I can have ample control with multiple open positions and keeping my risk profile across these trades as tight as possible.... (without running the risk of larger than usual losses, or smaller gains...)
None. Risk = (OrderOpenPrice - OrderStopLoss) * OrderLots * DeltaValuePerLot It has nothing to do with account balance or equity.
Really? So how do you determine how much you are willing to loose/risk if you apply a 2% rule to your trading strategy before you place a trade?
Yea, I'm still keen to understand where he is coming from...?
I think my first post was very long winded, and unclear to be honest.
I guess all I was asking was, what is the best way to manager MULTIPLE open positions at any one time.... If I place the first trade at 1% of the account balance, and then 3 more orders get triggered whilst the original trade is still yet to unfold, I will technically be taking more and more risk if the account balance is used to determine how much capital to allocate to each trade...
Any thoughts? That is why I was throwing it out there with using a combination of AccountBalance/Account Equity and Margin for the mean... I know there are seriously more sophisticated and savvy ways of doing it, but I don't want to get too technical at this stage...
I could have (although rarely) up to 8 open trades at any one time with 1% attached based upon the Account Balance... now if they all lose, this is not 8% loss... it would actually be worse.... just trying to understand how other people deal with these situations from an algorithmic stand point?
I think my first post was very long winded, and unclear to be honest.
I guess all I was asking was, what is the best way to manager MULTIPLE open positions at any one time.... If I place the first trade at 1% of the account balance, and then 3 more orders get triggered whilst the original trade is still yet to unfold, I will technically be taking more and more risk if the account balance is used to determine how much capital to allocate to each trade...
Any thoughts? That is why I was throwing it out there with using a combination of AccountBalance/Account Equity and Margin for the mean... I know there are seriously more sophisticated and savvy ways of doing it, but I don't want to get too technical at this stage...
I could have (although rarely) up to 8 open trades at any one time with 1% attached based upon the Account Balance... now if they all lose, this is not 8% loss... it would actually be worse.... just trying to understand how other people deal with these situations from an algorithmic stand point?
It's up to you to decide how you want to determine and use your risk %age, be it per trade or total for the account or a combination involving limiting the total number of open trades.
For example, you could a set y% per trade and only allow x concurrent trades giving a max risk at any one time of x * y %. This allows you to have your EA on many pairs and still limit your risk.
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Which one is best when calculating the position sizing relative to the risk of over exposure?
Been thinking; I have run back-tests on ST and imported the data per pair into excel and then sorted them chronologically. When these back-tests were done, only one trade can be open at any one time. Therefore, pair by pair, the position sizing (and the risk of 2% equity) is fairly accurate relative to what I am prepared to risk per trade (2%) and the account balance. Even more importantly, this does not factor in multiple positions and how the position size calculation is done on equity... therefore, I could actually be taking MORE risk on (in a life environment) any ONE trade depending on what the floating equity is, against the closing balance...
On the back of that, what I guess I am asking from someone with more experience (and getting my head around this), what is the best route to go? Calculating the risk based off of Account Equity or Account Balance? If I were to do available margin, this could really skew my results though?
Would it work, or am I being daft doing it this way (ignoring syntax - just rough):
if(accountequity < account balance)
> Do lot size calculations based upon the account equity... (for the sake of multiple positions and reducing exposure across the board?)
if(accountequity > account balance)
> Do lot size calculations based upon account balance ...(as you do not know for sure what the outcome of those trades really are - however, this will be at the cost of growth, because if those positions turn into locked in profit, this current position is worth less?)
Or what about the mean of the balance, equity and free margin for position sizing? Would that be more appropriate and fair across the board?
This thread is really about fishing for someone to share there thoughts as I just had a thought provoking situation when I was crossing the T's and dotting the I's so to speak, on my list?
Cheers!