risk calculation

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Chaiya Srisawat
1676
Chaiya Srisawat  

I try to understand the meaning of risk and did not meet solution..

what is risk be calculated?

in my signal has DD=1 and risk=4 from mql5 team calculation..


Also i define the calculation of lots size base on atr and risk as follows

LOTS=2*ATR*K?/L/SL/POINT*100

Is this correct? assume 2*ATR = 1% risk and how to calculate the k? value.


thank you

whroeder1
17949
whroeder1  
Risk depends on your initial stop loss, lot size, and the value of the pair.
  • You place the stop where it needs to be - where the reason for the trade is no longer valid.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.
  • Account Balance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the SPREAD, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)
  • Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency (EUR, in this case).
              MODE_TICKVALUE is not reliable on non-fx instruments with many brokers.
  • You must normalize lots properly and check against min and max.
  • You must also check FreeMargin to avoid stop out
Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5=0.1 Lots maximum.
Chaiya Srisawat
1676
Chaiya Srisawat  
whroeder1:
Risk depends on your initial stop loss, lot size, and the value of the pair.
  • You place the stop where it needs to be - where the reason for the trade is no longer valid.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.
  • Account Balance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the SPREAD, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)
  • Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency (EUR, in this case).
              MODE_TICKVALUE is not reliable on non-fx instruments with many brokers.
  • You must normalize lots properly and check against min and max.
  • You must also check FreeMargin to avoid stop out
Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5=0.1 Lots maximum.

Thank you very much for this knowledge.

So in my problem,  2*ATR mean to SL. and the money to this SL will 1% Risk or 1%  of Account balance.

And I can calculate LOT to this trade:-

OrderLots*((2*ATR)*DeltaPerlot+CommissionPerlot) = percent/100*Account Balance

where percent=1,

DeltaPerlot=L*POINT : (L=MODE_LOTSIZE) or approx $10 

It should correct now?
whroeder1
17949
whroeder1  
DeltaPerLot is approx $10, but I gave you the actual function. Use it.
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