How to avoid Stop Out?

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Antonio Argueta Lorenzo
80
Antonio Argueta Lorenzo  
How to avoid Stop Out?
Hi Traders. How to void the Stop Out on metatrader 5. Any clue? Any information will be much appreciated thanks, Antonio
Sergey Golubev
Moderator
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Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

How to avoive Stop Time?

Antonio Argueta Lorenzo, 2018.01.18 16:26

Hi Traders,


How to void the TIME STOP on metratader 5. Ithabks, Antonio.


whroeder1
17943
whroeder1  
Antonio Argueta Lorenzo: How to avoid Stop Out?

Make sure you will have free margin at the most averse excursion of all open (and pending) orders.

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  • You place the stop where it needs to be - where the reason for the trade is no longer valid.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.
Antonio Argueta Lorenzo
80
Antonio Argueta Lorenzo  
whroeder1:

Make sure you will have free margin at the most averse excursion of all open (and pending) orders.

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  • You place the stop where it needs to be - where the reason for the trade is no longer valid.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.
Hi there Whroeder1. 

Thanks a  lot for your advise and precious help. Will practice more and more. Every day I love trading more. 
cheers 
Antonio

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