Money Management while subscribing to Signals (Provider on CENT account)
Yes you're right, some cent accounts show up as dollars. And anything below 1% gets rounded up to 1%. There is also some other strange rounding that MT does as well:
- If the value is less than 1%, it is rounded up to 1%, i.e. assumed to be 1%. Example: 0.25% => 1%
- If the value is greater than 1% and less than 10%, it is rounded down to the nearest whole number. Example: 6.25% => 6%
- If the value is more than 10% and less than 100%, it is rounded down with step of 5%. Example: 29.7% => 25%
- If the value is more than 100% and less than 1000%, it is
rounded down with step of 10%. Example: 129.6% => 120%
Cheers
Filter
Hi Filter,
Thanks for the reply. It is good to know that "rules". It does not look like a bug, but rather like "feature" :)) Roundings due to "rules" 2-4, are quite acceptable, but rule "1" actually does not allow you to have "standard" account if provider has CENT account. That's pity, and I don't see any reason why it is working this way.
Are you aware of any workaround in that case ? Even if "use no more then ..." is set to only 1%, conversion percentage will still be calculated as 1% and it is obviously way too much in above example.
hehehe, yes it's a "feature" :)
There's really only one way around it (that I know of) and that's to open a cent account yourself. I believe just like the signal provider, some cent accounts appear to be in dollars to MT4/MT5. Having said that, I've also seen some accounts that are actually shown in "USC" which I'm assuming is US cents. So there doesn't seem to be any hard and fast rules. Maybe drop a request to service desk for clarification?
The 1% rule is a bit frustrating when dealing with a signal that has a massive account and i believe a lot of people may be getting caught out by it. As it also changes the proportion of lot sizing (eg both 0.1 lots and 0.9 lots show as 0.01 lots in subscriber account), investing too little money can actually be worse than investing more! I'm in the middle of writing an article and spread sheet calculator to help educate people about the issue.
Please let me know how you go with the service desk if you drop them a line
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I've read and understand how subscriber lot size is calculated based on % of deposit, balances, leverage, etc., but please consider this example:
SIGNAL PROVIDER (CENT ACCOUNT)
SUBSCRIBER (STANDARD ACCOUNT)
Account currencies and leverages are the same.
According to my understanding, percentage for volume conversion should be calculated on the following way :
Provider opened position with lot size of 100. According to above calculation, it should be "converted" to 100 x 0,0005 = 0,05 lot size on subscriber side. Correct ?
Well, in my case, it opened lot size of 1,00 !!! After taking a look at journal at my MT5, I found the following :
" ... percentage for volume conversion selected according the ratio of balances and leverages, new value 1%"
Can anyone explain this ? My guess is that after calculation is completed, it rounds percentage value for volume conversion to the whole number, and the smallest possible percentage is 1%.