Script/code for compounding?

paulan,

Below is the code for a fixed fractional money management model. The number returned in the case of forex is whole lots so you would divide by the lot size to get to whole lots i.e. 25 = 2.5 whole lots trading a 10,000 mini.

This formula requires 1 times delta cummulative profit from each position before moving your trading size up by 1. I use a delta of twice my largest expected drawdown which means that if I have 3 positions the strategy has to produce profts of 3 times the delta before trading 4 positions. This guarantees that your largest drawdown will move you at most 2 levels back in position size.

I translated code from one of my production systems written in C to MQL4 so it was easiest to do that as a script. In the long run you can make this a function and add it to an expert advisor with the variables as inputs. I hope this helps.

Scott

int start()
{
double initialBalance = 0;
double currentBalance = 0;
double delta = 0;
double minimumBalance = 0;

double positions = 0;
double increase;
double d;

d = 8 * (increase / delta);

if (currentBalance >= minimumBalance)
{
// You don't calculate positions until your current account balance is greater than the initial account balance
if (d >= 0)
positions = MathCeil((-1 + MathSqrt(d + 1)) / 2);
else
positions = 1;

if (positions == 0)
positions = 1;
}
else
positions = 0;

Alert("positions: ", positions);

return(positions);
}