How do I open a trade with a fixed risk percentage? MQL4

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Kyle Paarman
281
Kyle Paarman  

Hello,

I know this is a basic question, but I am struggling to find a way to open a trade with a fixed risk percentage.

As an example, I would like a trade to open with a risk of 2%. this way I can tell the EA to place a stoploss without stretching my risk.

If price hites my stoploss I want to close with 2% loss.


I have been trying to do this for the past 2 days. Is there anywhere I can find a code snippet that has this logic?

My code is attached and is not functional yet.


Busy trying to make an EA that opens trades based on price hitting the High/Low of the Bollinger bands.


Any advice/help would be much appreciated!

Thank you! :)


Edited as I realised my questions logic was flawed.

Bollinger Bands ®
Bollinger Bands ®
  • www.mql5.com
Bollinger Bands ® technical indicator (BB) is similar to Envelopes. The only difference is that the bands of Envelopes are plotted a fixed distance (%) away from the moving average, while the Bollinger Bands are plotted a certain number of standard deviations away from it. Standard deviation is a measure of volatility, therefore Bollinger Bands...
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William Roeder
20223
William Roeder  
Kyle Paarman: a way to open a trade with a fixed risk percentage.
Never risk more than a small percentage of your account, certainly less than 2% per trade, 6% total to the account.
  1. Risk depends on your initial stop loss, lot size, and the value of the pair. It does not depend on margin and leverage.
    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 You place the stop where it needs to be — where the reason for the trade is no longer valid.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. AccountBalance * 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 - MQL4 programming forum 2017.10.10
                Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum 2018.02.11
                Lot value calculation off by a factor of 100 - MQL5 programming forum 2019.07.19
    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 or 0.1 Lots maximum.

  2. Search for a GUI/Trade Assistant EA like mine (for MT 4): 'Money Manager Graphic Tool' indicator by 'takycard' - Risk Management - Articles, Library comments - MQL5 programming forum - Page 6 #55
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