For the current example how do we calculate stop out price (SO-50) i.e. 50% of Daily Drawdown Price, Exact Volume required to open the trade (in Lot size if required) is explained below from the screen shot of Excel Calculator for General Understanding:
Attached Image (click to enlarge)
1. For any propfirm challenge we purchase, we generally know un variable inputs like
-Challenge Account size
-Maximum Draw Down (MDD)
-Daily Drawdown(DD)
-Volume of 1 Standard Lot
-Minimum Step size in Lot
-Value of M & R (it is to be fixed by Us to Manage the Risk)
The above inputs to be fixed one time in Excel Calculator file as you see from Screen shot of image.
2. Only two variable inputs to be given by us i.e. Entry price & Target price whenever setup presents For current setup of USDJPY pair: Entry price at D=159.427JPY, Target price level at Z=159.363JPY
3. we get output parameters Like VOLUME=31150.32USD [or] LOT SIZE=0.31USD STOP OUT PRICE required at 50% DD (SO-50)=172.227JPY 4. Last but not least make sure Check in Row 21 must display "OK" if "NOT OK" try to increase the "R" in Row 6 till we get "OK".
Note: Please feel free to share your thoughts from general discussion from the above current example if any..
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