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Money Management

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Ingvar Engelbrecht
4505
Ingvar Engelbrecht  

I have been looking around for some straight forward method to calculate the lot size based on a percentage of Equity or Free margin.

I found som examples but I did not really like them or understand if they really where "universal" and they had other "bells and whistles" I did not like.


What variables do I need to calculate the lotsize. It should work for all pairs and on any base currency and what is the formula? 

I dont need the code, just the formula and the variables.

Tan Phan Ngoc
1327
Tan Phan Ngoc  
ingvar_e:

I have been looking around for some straight forward method to calculate the lot size based on a percentage of Equity or Free margin.

I found som examples but I did not really like them or understand if they really where "universal" and they had other "bells and whistles" I did not like.


What variables do I need to calculate the lotsize. It should work for all pairs and on any base currency and what is the formula? 

I dont need the code, just the formula and the variables.

double Risk = PercentToRisk / 100;
        if (AutoMoneyManagement)
        Lots = NormalizeDouble(AccountBalance()*Risk/StopLoss/(MarketInfo(Symbol(), MODE_TICKVALUE)),2);
        if (Lots >= MaxLots)
        Lots = (MaxLots);
        if (Lots <= MinLots)
        Lots = (MinLots);
Jose Miguel Soriano
5052
Jose Miguel Soriano  
ingvar_e:

I have been looking around for some straight forward method to calculate the lot size based on a percentage of Equity or Free margin.

I found som examples but I did not really like them or understand if they really where "universal" and they had other "bells and whistles" I did not like.


What variables do I need to calculate the lotsize. It should work for all pairs and on any base currency and what is the formula? 

I dont need the code, just the formula and the variables.

A idea...

// nLote = volume at the start of execution of the EA
// loteFinal = volume to run current order
// multBalnc = factor multiplying the initial balance to apply increased lot

if(multBalnc>0)
{
   mrgLibre= margenLibreCuenta();
   loteFinal= (mrgLibre > balanceInical*multBalnc)?
              (MathSqrt(mrgLibre/1000))*nLote:  //nLote= 0.01 1000; nLote= 0.1 10000
              nLote;                                        
}
else loteFinal= nLote;
Rodrigo Malacarne
Moderator
10645
Rodrigo Malacarne  
ingvar_e:

I have been looking around for some straight forward method to calculate the lot size based on a percentage of Equity or Free margin.

I found som examples but I did not really like them or understand if they really where "universal" and they had other "bells and whistles" I did not like.


What variables do I need to calculate the lotsize. It should work for all pairs and on any base currency and what is the formula? 

I dont need the code, just the formula and the variables.

Hello ingvar_e, I don't think there is a "universal" method for calculating lot sizes. It's exactly the opposite... there are several different methods to calculate it, and you have to select a priori which one you want to use inside your expert advisors.

For a not comprehensive list os position sizing methods, please take a look at this external link.

Ingvar Engelbrecht
4505
Ingvar Engelbrecht  
Makeprofitsuper:
double Risk = PercentToRisk / 100;
        if (AutoMoneyManagement)
        Lots = NormalizeDouble(AccountBalance()*Risk/StopLoss/(MarketInfo(Symbol(), MODE_TICKVALUE)),2);
        if (Lots >= MaxLots)
        Lots = (MaxLots);
        if (Lots <= MinLots)
        Lots = (MinLots);

 Makeprofitsuper

That looks like MQL4  not MQL5

Ingvar Engelbrecht
4505
Ingvar Engelbrecht  
josemiguel1812:

A idea...

   j1812osemiguel

  Not really what I was looking for

Ingvar Engelbrecht
4505
Ingvar Engelbrecht  
Malacarne:

Hello ingvar_e, I don't think there is a "universal" method for calculating lot sizes. It's exactly the opposite... there are several different methods to calculate it, and you have to select a priori which one you want to use inside your expert advisors.

For a not comprehensive list os position sizing methods, please take a look at this external link.

  Malacarne.

  The page you refer to list various methods to calculate lot size.  I know what method I want to use. Based on pair to trade, base currency, type of account  (micro, mini, standard) and the stoploss I have calculated I want to risk

  1 or 2 percent of my current free margin

Ingvar Engelbrecht
4505
Ingvar Engelbrecht  

Thanks all for comments.

I have code that works for most pairs and also on XAGUSD (Silver)

These pairs does not work properly but that is pairs I have no plan to trade anyway. Might be other too

 - MXNJPY

 - USDHKD

 - USDZAR

Code:

double CCalcLotSize2::Calc()
 {
        
   if(maxRisk2<0)                 //Fixed lot size  -0.40 is lotsize 0.40  +2 is 2% risk
    {
     lots = NormalizeDouble(-maxRisk2,2);
     return lots;
    }
    
  // Risk in percent
  
   //Calculate Tick Value
   if(SymbolInfoDouble(pair2,SYMBOL_TRADE_TICK_VALUE,tickvalue) == false)   // Give up
    return 0;
  
  MoneyToRisk = maxRisk2*FreeMargin/100;    //How much money to risk on this trade, MaxRisk2 is percentage, typically 1 or 2

  MoneyRiskTrade = StopLoss2*tickvalue;     //How much one mini lot would cost if loss
  
  lots = MoneyToRisk/MoneyRiskTrade;        
  
  lots = lots/numTrades2; 
  
  lots = NormalizeDouble(lots,2);
 
 // Print("LotSize  :" + DoubleToString(lots,2));
 
  return lots;
 }
Henry Latourrette
6964
Henry Latourrette  
ingvar_e:

Thanks all for comments.

I have code that works for most pairs and also on XAGUSD (Silver)

These pairs does not work properly but that is pairs I have no plan to trade anyway. Might be other too

 - MXNJPY

 - USDHKD

 - USDZAR

Code:

 I also want to contribute with my version for a percentage on Account Balance! - You can always just change AccountBalance(); for AccountFreeMargin();

As you can see, the "risk" is based on the Stop Loss! 

 

int AccountBalance();

int SL;

int TP; 

double MinLots=MarketInfo(Symbol(), MODE_MINLOT);

double VeryMaxLots=MarketInfo(Symbol(), MODE_MAXLOT);

extern double MaxLots=100; 

 

 

 

int start()

  {

//+------------------------------------------------------------------+

//  Calculate Volume Size                                            |

//-------------------------------------------------------------------+

double LotCalc= NormalizeDouble(risk*1/SL*AccountBalance(),2);

if(LotCalc>=MaxLots)

{

 Lots=MaxLots;

}

if(LotCalc>=VeryMaxLots)

{

 Lots=VeryMaxLots;

}

if(MinLots<LotCalc && LotCalc<MaxLots)

{

 Lots=LotCalc;

}

if(LotCalc<=MinLots)

{

Lots=MinLots;

} 
Alain Verleyen
Moderator
33807
Alain Verleyen  

Forum on trading, automated trading systems and testing trading strategies


Hello,

Please use the SRC button when you post code. Thank you.


This time, I edited it for you.


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