Calculate Loss from Lot Pips

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syrvn 0
134
syrvn 0  

Hello,

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?

For 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.

Lot Sizes

Max Loss

whroeder1
17942
whroeder1  
syrvn 0: I am currently looking into a hedging EA.
Stop looking at it. Every open order requires margin. On a $10,000 account opening 10 (0.01 lots) uses ~all free margin (50:1).
  1. Using 0.01 lots means you won't be making much ROI
  2. Using larger orders, means you won't be able to hedge more than twice.
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