How to alter lot size in signal

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danalatchumy
110
danalatchumy  
is there any other way to alter the lot size being executed by signal besides increasing the capital?
Sergey Golubev
Moderator
106719
Sergey Golubev  
This is some part of the article with examples about lot size:

Forum on trading, automated trading systems and testing trading strategies

How to Start with Metatrader 5

Sergey Golubev, 2017.02.02 07:45

How to Select a Deal Volume?
The question of how exactly the Subscriber's deposit will participate in trading via Signals service is one of the most critical ones. When solving this issue, we followed the already mentioned principle - providing maximum protection for each participant. As a result, we can offer a secure solution for Subscribers.

The question of how exactly the Subscriber's deposit will participate in trading via Signals service is one of the most critical ones. When solving this issue, we followed the already mentioned principle - providing maximum protection for each participant. As a result, we can offer a secure solution for Subscribers.

When enabling signals in the terminal and subscribing to one of them, Subscribers should select what part of the deposit is to be used when following the signals. There was an alternative solution of setting the ratio between Subscriber's and Provider's position volumes. But such a system could not guarantee the security of the Subscriber's deposit. For example, suppose that Provider's deposit is 30 000$, while Subscriber's one is 10 000$ and the ratio of 1:1 has been selected. In that case, the Signals Provider may just wait out temporary drawdown having a large volume order, while the Subscriber may lose all the funds with all his or her positions closed by Stop Out. The situation may get even worse if the Provider's balance suddenly changes (top up or withdraw), while previously specified volumes ratio remains intact.

To avoid such cases, we have decided to implement the system of percentage-based allocation of the part of a deposit, which is to be used in trading via the Signals service. This system is quite complicated as it considers deposit currencies, their conversion and leverages.

Let's consider a specific example of using the volumes management system:

  1. Provider: balance 15 000 USD, leverage 1:100
  2. Subscriber1: balance 40 000 EUR, leverage 1:200, deposit load percentage 50%
  3. Subscriber2: balance 5 000 EUR, leverage 1:50, deposit load percentage 35%
  4. EURUSD exchange rate = 1.2700

Calculation of Provider's and Subscriber's position volumes ratio:

  1. Balances ratio considering specified part of the deposit in percentage terms:
    Subscriber1: (40 000 * 0,5) / 15 000 = 1,3333 (133.33%)
    Subscriber2: (5 000 * 0,35) / 15 000 = 0,1166 (11.66%)
  2. After considering the leverages:
    Subscriber1: the leverage of Subscriber1 (1:200) is greater than Provider's one (1:100), thus correction on leverages is not performed
    Subscriber2: 0,1166 * (50 / 100) = 0,0583 (5.83%)
  3. After considering currency rates of the deposits at the moment of calculation:
    Subscriber1: 1,3333 * 1,2700 = 1,6933 (169.33%)
    Subscriber2: 0,0583 * 1,2700 = 0,0741 (7.41%)
  4. Total percentage value after the rounding (performed using a multistep algorithm):
    Subscriber1: 160% or 1.6 ratio
    Subscriber2: 7% or 0.07 ratio

Thus under the given conditions, Provider's deal with volume of 1 lot will be copied:

- to Subscriber1 account in amount of 160% -  volume of 1.6 lots

- to Subscriber2 account in amount of 7% -  volume of 0.07 lots

Be careful not to confuse the percentage value of the used part of the deposit and the actual ratio of position volumes. The trading terminal allows setting the part of the deposit in percentage value. This value is used to calculate the ratio of position volumes. This data is always fixed in the log and is shown in the following way:

Subscriber1:

Subscriber2:

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danalatchumy
110
danalatchumy  
Sergey Golubev:
This is some part of the article with examples about lot size:


Hi Sergey Golubev,

Thank you so much for the reply and effort. I have already seen the article. I understand how the allocation is being done. I am just curious if there is any other way to bypass this and increase the lots size without having to increase my capital. Because based from the article, capital,leverage and load is the main factor that affects the lots size. And I am on the max for both the leverage and load =='
Sergey Golubev
Moderator
106719
Sergey Golubev  
danalatchumy:
Hi Sergey Golubev,

Thank you so much for the reply and effort. I have already seen the article. I understand how the allocation is being done. I am just curious if there is any other way to bypass this and increase the lots size without having to increase my capital. Because based from the article, capital,leverage and load is the main factor that affects the lots size. And I am on the max for both the leverage and load =='
I was reading some thread on rus part of the forum, and they (signals subscribers) proposed some complicated way to increase lot size (some programming way) but I can not find this thread now sorry.
danalatchumy
110
danalatchumy  
Sergey Golubev:
I was reading some thread on rus part of the forum, and they (signals subscribers) proposed some complicated way to increase lot size (some programming way) but I can not find this thread now sorry.
It's okay. Let hope if someone can help on this. Anyway, thanks again for your efforts. I appreciate it.
Eleni Anna Branou
Moderator
7014
Eleni Anna Branou  
There are some products in the market that increase the lot sizes of signals, during the copying process, but they are not advisable since they increase the DD and risk as well.
danalatchumy
110
danalatchumy  
Eleni Anna Branou:
There are some products in the market that increase the lot sizes of signals, during the copying process, but they are not advisable since they increase the DD and risk as well.
Hi Eleni,

Thanks for the suggestion. Will definately take this as an option.
Pete
222
Pete  
I don't know for sure, but can you use a trade copier, and determine your own lot size?  There are free ones, not sure I can state the name here due to forum rules, but googling for a free trade copier should find you the most popular one.  Then you set up one account to follow the signal, and a second account copying the first account's trades, at the different lot size.  HTH.
Eleni Anna Branou
Moderator
7014
Eleni Anna Branou  
Pete:
I don't know for sure, but can you use a trade copier, and determine your own lot size?  There are free ones, not sure I can state the name here due to forum rules, but googling for a free trade copier should find you the most popular one.  Then you set up one account to follow the signal, and a second account copying the first account's trades, at the different lot size.  HTH.

You should always know that by increasing lot size, you increase DD and risk as well.

Each signal provider has its own trading plan in mind with a specific DD and risk to reward ratio.

If you alter that you put your account in danger. 

Pete
222
Pete  
Eleni Anna Branou:

You should always know that by increasing lot size, you increase DD and risk as well.

Each signal provider has its own trading plan in mind with a specific DD and risk to reward ratio.

If you alter that you put your account in danger. 

I quite agree Eleni, but I guess if the OP is happy to do that, then the trade copier does the job?
Eleni Anna Branou
Moderator
7014
Eleni Anna Branou  
Pete:
I quite agree Eleni, but I guess if the OP is happy to do that, then the trade copier does the job?
Yes, of course.
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