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Thread: Calculating Lot size

  1. #1

    Calculating Lot size

    Im new here, i've read many articles about some estrategies and money management.

    Well, i have studied some about lots calculation (exponential and others), then i just think in some strategy that could be calculate using some relation of Volume (ATR), risk per trade and tick value.

  2. #2

    Calculating Lot size

    i just saw your response. I will study more calmly later. Its very interesting, cause im having the exactly problem of STOP OUT as you said. I will response later.

  3. #3

    Calculating Lot size

    Stop out is a different matter. AFMC just tells you if you have enough margin to open the order. As the trades go against you AccountEquity and AccountFreeMargin drop.

  4. #4

    Calculating Lot size

    If I know the account balance, the dollar amount I am willing to risk, and the stop loss in pips, how do I calculate the order size in lots? For example:
    Account balance ($USD): 1,000.00
    Amount of risk (%): 0.02
    Total dollar risk ($USD): 1,000 * 0.02 = 20.00
    Stop loss (pips): 50
    Dollar risk per pip ($USD): 20.00 / 50 = 0.40

  5. #5

    Calculating Lot size

    1. Dollar risk per pip is $10/lot ($1/point on a 5 digit broker) for a pair ending with USD, on a USD currency account. Period. The Dollar risk total is 50 pips * $10/lot * lotsize. $20.00/500=0.04 lots.
    2. In code
      • You place the stop where it needs to be - where the reason for the trade is no longer valid.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.
      • Account Balance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerlot + CommissionPerLot) (Note OOP-OSL includes the SPREAD)
      • Do NOT use TickValue by itself - DeltaPerlot
      • You must normalize lots properly and check against min and max.
      • You must also check FreeMargin to avoid stop out

    3. Use a GUI: Indicators: Money Manager Graphic Tool - traders' Forum - Page 5 'Money Manager Graphic Tool' indicator by 'takycard'

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