As promised yesterday here is an Excel file I have recently made to help me with money management.
The general idea is you enter your trading capital available, select a risk profile i.e how much can you afford to lose if everything goes wrong. You can also select what percentage of the trade you want to take off when the trade reaches B/E. The spreadsheet will then show you how many lots to trade based on the stop you will be using on that particular trade. It also shows how many pips are required to breakeven to take off the percentage of lots you have chosen. Obviously these numbers are rounded to whole numbers. The spreadsheet is designed for mini-lots ($10,000 per lot or $1 per pip). it does not account for the different pip value for cross currencies, but is close enough to keep your risk under control.
I find it easiest to select the entire row that matches my stop to highlight it for easy reference when trading.
The calculations in the top group will always close you out at a profit while the lower group is the plain vanilla DIBS taking enough off to break even.
The spreadsheet is protected apart from the four fields marked by the black arrows to prevent the calculations getting corrupted in daily use, but please feel free to modify it to you own requirements. Hope you find it useful.
The general idea is you enter your trading capital available, select a risk profile i.e how much can you afford to lose if everything goes wrong. You can also select what percentage of the trade you want to take off when the trade reaches B/E. The spreadsheet will then show you how many lots to trade based on the stop you will be using on that particular trade. It also shows how many pips are required to breakeven to take off the percentage of lots you have chosen. Obviously these numbers are rounded to whole numbers. The spreadsheet is designed for mini-lots ($10,000 per lot or $1 per pip). it does not account for the different pip value for cross currencies, but is close enough to keep your risk under control.
I find it easiest to select the entire row that matches my stop to highlight it for easy reference when trading.
The calculations in the top group will always close you out at a profit while the lower group is the plain vanilla DIBS taking enough off to break even.
The spreadsheet is protected apart from the four fields marked by the black arrows to prevent the calculations getting corrupted in daily use, but please feel free to modify it to you own requirements. Hope you find it useful.
Attached Image (click to enlarge)
Attached File(s)
Never argue with a fool....
