Money Management - page 18

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Range Based MM Idea ???

Gidday

I am looking for a mm system that is based on using the daily range as the TP and SL.

The way I am looking for it to work is the greater the range the more of the FreeMargin is risked and vice versa.

I have attempted to code it my self but have had a bit of trouble

My maths might be wrong but this is what I am looking to acheive.

bar2

H = 1.64947

L = 1.64889

Range = H-L = 58

bar1

H = 1.64922

L = 1.64771

Range = H-L = 151

Percentage Risk = 151-58/151=0.61*100=61%

if there is $1250free margin I would like to the Percentage Risk as above the differance between bar ranges so 1250*61% = 762.5 risked on the next trade.

the Tick value is $10 so $762.5/$10 = 76.25 pips ? i think

the range is 151 from the previous bar so w divide 76.25/151= 0.50 so my lot size is 0.50.

double Range = (H-L);

Is this able to be coded

Beno

 

Calculator(s) for Auto MM etc.

Need a calculator for this:

Starting balance 500.00 (this is a plug-in number)

MM=1 (auto money management is on)

Risk set to 1

52 weeks (plug-in number)

Equity growth per week 5% (plug-in number)

So, if user is starting with 500.00 account balance and gains a consistent 5% per week and the lot size adjust by .01 (1 nano lot) for every 5% gain on account, what would the account be at the end of 52 weeks.

I've seen this or something similar but not locating it so hopefully someone has it or can write it. Thank You, Kevin

 

Thank you. I need to refresh my mm stuff. A little bit lost now :P

 

Check out this tread by leeb, he made this EA wich shows you your entry, TP and SL with visual lines which you can move and the data will also change, very nice job!

https://www.mql5.com/en/forum/178976

 
efex01:
Hello Everyone,

I am a manual trader and i am looking to program a simple MT4 indicator to display on the main chart the required lot size to take on the next trade as following:

Lot size =(Equity x 1%) / (open spread + arbitrary number of pips +(Distance between current candle OPEN and SMA50))

Thanks,

Not sure I understand your request. You want to know what size trade to take to risk 1% of your equity based on how far away from the 50SMA price is at the moment? Is that because you are using the 50 as your stop level? If so I have attached two scripts that will do it for you. You just have to input how many pips it is yourself.

Otherwise I can't see how the 50SMA has any relation to your trade size. Risk is totally dependent on your stop size. The bigger the stop the smaller the trade size and vice versa for the same risk percentage.

Try the scripts. Remember 4digit 20 pips = 5 digit 200 pips.

 

Auto Lot Calc

Here's what I use to calculate position sizes.

You can set three variables:

Risk: The percentage of equity you want to risk for the trade.
SL: Stop loss distance in pips away from the entry
Balance: If kept at zero, the equity amount used in calculations is the current account equity. However, I like to keep the dollar amount of risk constant for a day or so. So, I allow for a user defined equity input.
Files:
lot_calc.mq4  2 kb
 

Money Management and Lot Sizing Help!

Hello to the forum,

I'm trying to get my head around good money management. I'm sure many if not all traders would agree it is an essential part of becomming a successful trader.

I would like to build a visual basic application that will help me to determine my lot size from the percentage of my account I'd like to risk and my stop loss in pips. So if I would like to risk 2% of an accont size of $1000 that would be $20. How do I know what lot size that would be?

I have looked around quite a bit already and found spreadsheets and other applications that can do quite similar but none that I can really understand.

I undestand that leverage and the account type (micro, mini & standard) has something to do with it but for the life of me I can't seem to work it out.

Essentially I plan on trading seven or eight majors and want a way to pick the lot size for each based on the percentage I would like to risk i.e 2% and my stop loss value i.e. 50 pips.

Could someone please explain to me how I would calculate these values?

I would much appreciate it!

Thanks in advance.

 

how many positions could you have open at once

 

I know you have had problems with spreadsheets and stuff, but here is a good one, and before you even download it, watch the video on the page first to see if is something you might want to use. They describe how to use it very well in the video on the page, and it's free on top of that.

Ultimate Swing Trader

 

How much risk per trade?

There are two factors that determine RISK:

(1) How many pips your stoploss is away from the entry point

(2) How many lots you buy/sell

Let's say that you have $10,000 trading capital.

The experts say that you should risk only 1%-2% of it in each trade.

So 2% of $10,000 = 0.02 x $10,000 = $200.

Now let's say I want to buy GBPUSD (1 lot = $10 per pip, see section above)

The question is: how many lots can I buy, to keep my risk at $200, and if I want to set my stoploss just outside a swing point, which happens to be 40 pips away from entry?

Answer: if I trade 1 lot, then 40 pips x $10 per pip = $400 risk.

So to keep the risk at $200, I must trade half of this, i.e. 0.5 lots.

Now, 0.5 lots = 5 minilots = 50 microlots = 500 nanolots, you can work on whatever basis you like.

So the formula is: number of lots = [trading capital] x [percent to risk]/100 / [pips between entry and stoploss] / [dollars per pip]

Let's do another example using the formula:

-- Trading capital = $500

-- Percent to risk per trade = 2% (= $10)

-- This time you want to place your stoploss is 100 pips from entry

-- We're trading EURUSD, which is $10 per pip (per lot traded)

So the answer is: 500 x 2/100 / 100 / 10 = 0.01 lots (or 1 microlot)

Working backwards to check: at 0.01 lots, the movement is 10 cents per pip. So if we lose 100 pips (from entry to stoploss), the loss is 100 pips x 10 cents = $10, which is 2% of our $500 account.

Here are two very important points:

1. Leverage (explained in the next section) and risk are unrelated, except that leverage determines the maximum amount of risk you can take. But by keeping your risk at 1%-2%, you should never come near to using up your available 'margin'.

2. In the examples above, it doesn't matter whether your broker is offering (for example) 50:1, 100:1 or 200:1 leverage. Your risk is still $200 in the first example, and $10 in the second example. The leverage is irrelevant.

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