Most of trader pursue profit and forget a risk behind of their trading
so, i came here to know your opinion guys.... what is really important in your trading or signal that u will copy, is it profitable or Minimize the Risk ??Thank you guys
Risk depends on your initial stop loss, lot size, and the value of the symbol. It does not depend on margin and leverage. No SL means you have infinite risk (on leveraged symbols). Never risk more than a small percentage of your trading funds, certainly less than 2% per trade, 6% total.
You place the stop where it needs to be — where the reason for the trade is no longer valid.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.
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.)
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) Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum (2018) Lot value calculation off by a factor of 100 - MQL5 programming forum (2019)
You must normalize lots properly and check against min and max.
You must also check Free Margin to avoid stop out
For MT5, see 'Money Fixed Risk' - MQL5 Code Base (2017)
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.
I agree with William's philosophy that risk is more important because capital preservation is the first goal. Also remember that if you lose 50% of your capital, you then have to make 100% profit to get back where you started! Not easy right?
However, once you have risk being managed well, a more advanced technique is to start attempting to maximise the profit/risk ratio. This can be done by careful consideration of the correlation between the assets you are trading (trading non-correlated or ideally negatively correlated assets), etc. This is an advanced topic, but the benefits if you can use it are significant.
If you are interested in finding out more, I have produced an entire video series of 'how to do this in MT5' and have provided numerous code samples.
You can find the video series here: https://www.youtube.com/playlist?list=PLv-cA-4O3y979Ltr9wQ2lRJu1INve3RCM
Thank you Martyn
I agree with you.
Before think about profit, we think about how to control the risk..
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