Hi,
I thought I could help some people here by posting a spreadsheet I have put together for myself that helps me in my trading decisions. It's a bit rough and ready but it works for me. I took my inspiration from Mark Adams excellent spreadsheet for trading Beau Diamonds 5 min forex but I have honed it to give the information I need to make my trading decisions. Another spreadsheet I used the results from to model my spreadsheet is the "fx risk calculator" at www.eurusd.com which I find invaluable for giving definitive answers on risk, leverage etc.
To walk you through the spreadsheet, you put in the lot size, the amount of money in the account and the standard percentage you want to risk per trade.
Then you put the direction (buy or sell), entry price, stop loss and exit price.
The spreadsheet then calculates the risk in points, % risk / trade (each currency can be manually customised by changing the formula here e.g. half risk on eurusd & usdchf), the risk capital on each trade, the number of lots at the stated entry price, the number of lots if you entered at the current price (useful for catching those missed moves, or if the price suddenly moves in your favour and you have the option to risk more lots on the trade for the same risk capital).
Once the trade has executed, you put in the number of lots you entered the trade at and the spreadsheet calcuates the current stoploss points, stoploss profit/loss and the current profit/loss based on the current price.
If the trade moves in your direction, you can update the stoploss price and the stoploss points and stoploss profit/loss will update.
The spreadsheet also calculates (for all the currencies) the profit/loss if the stops are hit, the balance if the stoplosses are hit, the current profit/loss based on the current prices. It also calculates the value of the active trades and the leverage
used in the active trades.
The spreadsheet assumes the account is based in US$ and has rows for eurusd, gbpusd, usdchf, usdjpy, usdcad, audusd, gbpjpy, eurjpy, eurgbp and nzdusd. They're all the ones I ever had a need to work out.
The spreadsheet has a button called "Get FX Prices" which uses a macro to access yahoo to get 15 min delayed fx prices.
You can type in the current price for yourself for better accuracy.
I owe FT for the following idea on money management.
For the people who are more risk adverse than normal it is possible to trade say like a maximum 1% of capital at 10000 or more and proportionally reduce it to 0.5% if your capital drops down to 7500 or below. This money management has really helped me a lot! It takes after some of the Market Wizard strategies where they reduce their trade size sometimes 10 or 100 fold when they are on a losing streak and then gradually increase their trade size as they begin to win again.
If you want to keep it simple and have it as a constant percentage of your capital then set both percentages to the same value.
Just a note, the risk/trade is worked out based upon the stoploss balance.
And the usual disclaimer about use at your own risk
Let me know if you find anything wrong with it, and let me know if you like it!
Best regards
Alan
I thought I could help some people here by posting a spreadsheet I have put together for myself that helps me in my trading decisions. It's a bit rough and ready but it works for me. I took my inspiration from Mark Adams excellent spreadsheet for trading Beau Diamonds 5 min forex but I have honed it to give the information I need to make my trading decisions. Another spreadsheet I used the results from to model my spreadsheet is the "fx risk calculator" at www.eurusd.com which I find invaluable for giving definitive answers on risk, leverage etc.
To walk you through the spreadsheet, you put in the lot size, the amount of money in the account and the standard percentage you want to risk per trade.
Then you put the direction (buy or sell), entry price, stop loss and exit price.
The spreadsheet then calculates the risk in points, % risk / trade (each currency can be manually customised by changing the formula here e.g. half risk on eurusd & usdchf), the risk capital on each trade, the number of lots at the stated entry price, the number of lots if you entered at the current price (useful for catching those missed moves, or if the price suddenly moves in your favour and you have the option to risk more lots on the trade for the same risk capital).
Once the trade has executed, you put in the number of lots you entered the trade at and the spreadsheet calcuates the current stoploss points, stoploss profit/loss and the current profit/loss based on the current price.
If the trade moves in your direction, you can update the stoploss price and the stoploss points and stoploss profit/loss will update.
The spreadsheet also calculates (for all the currencies) the profit/loss if the stops are hit, the balance if the stoplosses are hit, the current profit/loss based on the current prices. It also calculates the value of the active trades and the leverage
used in the active trades.
The spreadsheet assumes the account is based in US$ and has rows for eurusd, gbpusd, usdchf, usdjpy, usdcad, audusd, gbpjpy, eurjpy, eurgbp and nzdusd. They're all the ones I ever had a need to work out.
The spreadsheet has a button called "Get FX Prices" which uses a macro to access yahoo to get 15 min delayed fx prices.
You can type in the current price for yourself for better accuracy.
I owe FT for the following idea on money management.
For the people who are more risk adverse than normal it is possible to trade say like a maximum 1% of capital at 10000 or more and proportionally reduce it to 0.5% if your capital drops down to 7500 or below. This money management has really helped me a lot! It takes after some of the Market Wizard strategies where they reduce their trade size sometimes 10 or 100 fold when they are on a losing streak and then gradually increase their trade size as they begin to win again.
If you want to keep it simple and have it as a constant percentage of your capital then set both percentages to the same value.
Just a note, the risk/trade is worked out based upon the stoploss balance.
And the usual disclaimer about use at your own risk
Let me know if you find anything wrong with it, and let me know if you like it!
Best regards
Alan
Just joking.
></o
I will give 7.2 a try when I test again.
