# risk calculation

1676

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

17949

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• You place the stop where it needs to be - where the reason for the trade is no longer valid.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.
1676

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• You place the stop where it needs to be - where the reason for the trade is no longer valid.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?
17949

DeltaPerLot is approx \$10, but I gave you the actual function. Use it.