Risk Management MQL5: Volume Calculation from Equity

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quantumninja
48
quantumninja  

Hi All,

I wanted to know if there is a formula, to calculate the volume to be risked in a trade relative to a predefined percent of the Equity

for example, risk 2% in any new trade, for an account's Equity, how to calculate the volume needed to open the trade ?

Also is Equity preferred more than the Balance for Dynamic MQL5 Risk Management

whroeder1
17945
whroeder1  
  1. Don't double post!
              General rules and best pratices of the Forum. - General - MQL5 programming forum

  2. For your second question, since you should never risk more than a small percentage of your account (2% or less) per trade, it makes little difference.

  3. For MT4:
    1. In code: Risk depends on your initial stop loss, lot size, and the value of the pair.
      1. You place the stop where it needs to be - where the reason for the trade is no longer valid.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.
      2. 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.)
      3. 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.
                  MODE_TICKVALUE is not reliable on non-fx instruments with many brokers.
      4. You must normalize lots properly and check against min and max.
      5. 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.
    2. Use a GUI EA like mine (for MT4): Indicators: 'Money Manager Graphic Tool' indicator by 'takycard' Forum - Page 6
quantumninja
48
quantumninja  

Thanks,

sorry for double posting, i thought i am in the wrong category so i opened it there

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