Anyone have a good formula to calculate lot size based on risk taking into account the stoploss?
- Lot size based on risk / stoploss
- Silver and Gold mystery
- Need moneymanagement LOT size formula based on SL and Account Risk!
Example in this thread -> https://www.mql5.com/en/forum/123914.
dwmcqueen:
Anyone have a good formula to calculate lot size based on risk taking into account the stoploss?
Anyone have a good formula to calculate lot size based on risk taking into account the stoploss?
Not sure if this is exactly what you want but I calculate lot sized based on a risk parameter using ATR. You could use any other indicator/calculation based on the same idea. Then this can be used to calculate the SL TP also.
Here is the pseudo code:
External Parameters: Equity Risk Per Trade = 0.02 // 2% Risk TP % Per Trade = 2.50 // 250% of the Risk Risk In Pips = 3.0 * ATR(14) // 3 times the 14 period ATR e = Equity // Get the Account Balance Contract Size = 100,000 // Get the Lot Size of the Symbol we are trading Lots = Equity Risk Per Trade * e / (Contract Size * Risk In Pips) // Example: 2.0 = 0.02 * 50,000 / (100,000 * 0.0050) // Lots may need to be normalised to a specific decimal place. SL = Risk In Pips // StopLoss based on the ATR TP = Risk In Pips * TP % Per Trade // StopLoss as a multiple of the ATR
Hope it helps.
Pete
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