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MM Formula that includes trade cost ?

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kkjawz
352
kkjawz 2014.06.28 10:01 

Hello I was looking for proper way to calculate position size that includes the cost of placing a trade (spread, commission)

So overall if I have $10k account and choose 10% risk

After a losing trade, I will have exactly $9k left in my account balance

whroeder1
14519
whroeder1 2014.06.28 12:04  
kkjawz: proper way to calculate position size that includes the cost of placing a trade (spread, commission)

AccountBalance * percent + commission = Risk = ( OrderOpenPrice - OrderStopLoss )*Direction() * DeltaPerLot() * lotsize. Solve for lotsize and normalize properly. You place the stop where it needs to be - where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support. Note that OrderOpenPrice - OrderStopLoss includes the spread.

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