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Money Management, Please help.

  • #21
  • Aug 3, 2007 2:33pm Aug 3, 2007 2:33pm
Quoting tazmet
This is a great calc as far as checking your math if you want to know how many units equal what risk % to your account. But you can't first set your risk % and have it calculate the units which is what I needed it to do. Guess I need to create my own Excel spreadsheet.
Make sure you read all the posts and follow the instructions as laid out in Post #1.
Que's keen to see this used and to get feedback

http://www.forexfactory.com/showthread.php?t=38909
  • #22
  • Aug 3, 2007 4:19pm Aug 3, 2007 4:19pm
Quoting tazmet
Guess I need to create my own Excel spreadsheet.
Try this sreadsheet first. It's clean and simple, but sounds like what you describe.
Attached File(s)
File Type: zip FXRisktable.zip   5 KB | 779 downloads
  • #23
  • Aug 6, 2007 5:11pm Aug 6, 2007 5:11pm
  •  tazmet
  • | Joined Jun 2007 | Status: Gold Member - Solid Gold Baby! | 47 Posts
Thank you! This is just what I needed. I don't use MT4 and am a terrible programmer/formula writer. Calculating everything, while necessary for understanding seemed too time consuming. So this is perfect. By the way, Dialists post is great and it made perfect sense when I was dealing with mini, micro or standard lots. But I use Oanda. With Oanda, 1 lot is 1 unit and I found myself stuck in circular reasoning trying to figure out how many units to trade as it always depends on the value of the pip which changes the more units you use. Then I spent more time trying to calculate pip value and trying to create a formula for GBP/JPY which was rediculous. No doubt these were all useful exercises. But in any event, with this calc I can get back to spending time on other aspects of my money mgmt and trading plan.

Quoting Micro-MiniMe
Try this sreadsheet first. It's clean and simple, but sounds like what you describe.
My business model Get pips => Keep Pips => Repeat
  • #24
  • Aug 6, 2007 7:37pm Aug 6, 2007 7:37pm
Quoting tazmet
Thank you! This is just what I needed.
Glad I could help. I picked that spreadsheet up off a brokers web site last year. Can't remember who though, I removed that link a long time ago. Wish I could take credit for it's creation. I'm not sure about the math behind it; although I understand the formulas and I think it's in the ball park. If not, it can be changed easily.
  • #25
  • Dec 23, 2007 10:00pm Dec 23, 2007 10:00pm
Thanks to all, for sharing their spreadsheets and knowledge to a new trader.
  • #26
  • Edited 2:18pm Jan 6, 2019 1:15pm | Edited 2:18pm
Quoting mrgreen
This sheet will calculate the position size based on the account size and risk percentage. Change the Acct and Risk % to reflect your account. {file}
Hi mrgreen,

Thank You Very Much for this spreadsheet. Is it the Stop Loss in pips (10, 15, 20, 25 etc) that's in the first box? And, right under it, those numbers are the units traded? How do I convert the units in order to get to the proper Lot size?

thanks in advance

attim

P.S.
If anybody knows the answers for these please contribute. Thanks.
Attached Image (click to enlarge)
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  • #27
  • Jan 7, 2019 9:35pm Jan 7, 2019 9:35pm
easy steps to calculate % risk and reward
Step1.if your account is A $, calculate how much $ is B% of A
Step2. Buy/sell any pair with volume 0.01 on MT4
Step3. Drag the line to anywhere UP or DOWN (depend on your BUY or SELL), u can see the PIPS and the $ in + or - , you have to mulplicate this to a coefficient C until you get B.
Step4.You take another volume (C-1)*0.01
Step4. Okay, stop there, set stoploss and take profit as in step3 for the trades in step4 and u have your stoploss and takeprofit fixed.
Ftmo2 All Time Return: 45.7%
  • #28
  • Jan 21, 2019 10:49pm Jan 21, 2019 10:49pm
Quoting andrei-irk
easy steps to calculate % risk and reward Step1.if your account is A $, calculate how much $ is B% of A Step2. Buy/sell any pair with volume 0.01 on MT4 Step3. Drag the line to anywhere UP or DOWN (depend on your BUY or SELL), u can see the PIPS and the $ in + or - , you have to mulplicate this to a coefficient C until you get B. Step4.You take another volume (C-1)*0.01 Step4. Okay, stop there, set stoploss and take profit as in step3 for the trades in step4 and u have your stoploss and takeprofit fixed.
Risk reward ratio is very much useful parameter in this case; in my trading I use fixed risk reward ratio instead of fixed trading lots size.
  • #29
  • Feb 6, 2019 3:41am Feb 6, 2019 3:41am
I don’t know how can you maintain fixed risk ratio even though market moves at random most of the time. Sounds illogical
  • #30
  • Feb 7, 2019 12:47am Feb 7, 2019 12:47am
there is nothing 100% in Forex trading , so with certainly we have nothing to ensure particularly risk ratio. success on trading completely depends on the capability , how much you can manage your risk ratio, if you can there is a chance to avoid unfortunate risk and losses, otherwise no way to avoid losses.
  • #31
  • Feb 7, 2019 8:23pm Feb 7, 2019 8:23pm
I have never managed fixed amount of money with any fix number of ratio. I am not a daily trader. But what I can suggest is, risk management depends on your strategy that works for you.
  • #32
  • Feb 10, 2019 7:22am Feb 10, 2019 7:22am
what you think Mate there is any different between money and risk management ?
  • #33
  • Feb 15, 2019 3:47am Feb 15, 2019 3:47am
Quoting AlexImam
what you think Mate there is any different between money and risk management ?
There could be if you define money management as your take profit/stop loss values and risk management as your trade size. Risk management would need to be considered first so you knew how big your trade would be, then you manage the trade profit/loss with your money management tolerances. This all depends if you think there is a difference.
You cannot be extraordinary by being normal
  • #34
  • Feb 15, 2019 5:41am Feb 15, 2019 5:41am
Does it mean you are ready to lose up to 6% with every stake you make?
  • #35
  • Feb 28, 2019 1:34am Feb 28, 2019 1:34am
Quoting diallist
{quote}You got the $2000 correctly. Now, to find out what position size to trade (how many units to trade) you have to know the value of each pip, and the size of your stop. Let's say you have determined that your stop needs to be 30 pips. The question now is "How much is each of those pips worth?". I don't use Oanda, so bear with me if the following isn't exactly right. 1 Standard lot = 100,000 units 1 Mini lot = 10,000 units 1 Micro lot = 1000 units Anything less than 1000 units is non-standard and is a function of Oanda. To get the pip value,...
Good insight. this is really helpful for anyone still struggling on how to calculate risk. It's all about your pip value and the size of your stop loss in pips. This risk calculation formula is easy to understand and apply and can help you save a lot of money.
  • #36
  • Feb 28, 2019 4:54am Feb 28, 2019 4:54am
Quoting LanaBanana
Does it mean you are ready to lose up to 6% with every stake you make?
I must say; 6% is so aggressive percentage! When your strategy providing good success ratio till now, you can’t allow more 2% risk reward ratio if you wanna enjoy your trading in a long run.
  • #37
  • Feb 28, 2019 5:28am Feb 28, 2019 5:28am
Money management is a confuse thing ,
i have never seen a trader
which money management works at all 100% ,
its all about temporary session.
  • #38
  • Feb 28, 2019 7:27am Feb 28, 2019 7:27am
everything is confusing in Forex trading ,
nothing 100% in here, but having good discipline can make you profitable.
  • #39
  • May 13, 2019 5:13am May 13, 2019 5:13am
discipline is a great attitude from all human habits , trading with discipline is a tough game , because we cant avoid emotions when trading , for that reason we should practice more and more in demo.
  • #40
  • May 20, 2019 8:27pm May 20, 2019 8:27pm
This tripped me up for the first several months of my time in the markets. I've got an easy way without having to do "actual" math.

I go off of a 3k balance. When I put a trade in for EURUSD for example:

Long @ 1.1165o
Stop @ 1.1135o
Subtract the difference (65-35 = 30 pips)
Take the unit size (0.10 = $1/pip)
Times that by the pips (30 pips)
and your SL is $30 buffer, which is 1% of a 3k account, which is how I manage risk.

Hope that helps!
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