I am currently looking into a hedging EA. There is a formula to
calculate the "expected loss in case system is unable to open new
positions" (see below). For R10 it results in -102,881. For e.g. when
entry level for a SELL position in EUR/USD is 1.1300 the Recovery Line is 1.1350 (50 Pips).
Does anybody know, how to calculate the expected loss in EUR?
a SELL position (entry at 1.1300), when all 10 hedging positions are open and the current
price is 1.1350 (Recovery Line), I know that all BUY orders should be
Zero (0). Summing up the lot sizes for all SELL orders
results in 0.77. The difference in price (recovery-entry) = 0.0050.
Having these information I can calculate the expected loss: 0.0050 *
0.77 * 100.000 / 1.1350 = 339.21 EUR.
However, I struggle to calculate the loss in EUR using -102.881 LotPips.