Money Management Question!

Hey, so the strat I've been trading is doing very good on demo. I wanted to start using money management in demo now so I can learn to trade with money management instead of it being random

The problem is I trade on any timeframe with my strat. Whichever I see the trigger on I will be trading. SO I could enter on the daily, 30, 5 minute charts. So my question is, how do you determine your lot ( pip size)

I only want to trade 2% of my account, and I won't have a set stop loss. It will vary depending on the previous high. Sometimnes I'll have a 10 pip sometimes I'll have a 45 pip stop loss. So depending on the situation it will be different. So how do you guys figure out really fast (if you're trading on the 5 minute) you have to learn how to calculate it instantly! Could someone give me the math on how to do it, or how you do it?

Thanks for helping a rookie out!
Joe

Lots = AccountEquity * Percent to Risk / Stop Loss in pips / Amount per pip

in your example on EURUSD with a pip = $10.00

$100000 * 0.02 / 45 / 10 = 4.4 Lots (45 pip stop)

or

$100000 * 0.02 / 10 /10 = 20 Lots (10 pip stop)

The formula is the same for any stop loss size in pips

I thought you used risk % to figure out how much each pip was worth? So instead of saying I'm using 10$ a pip, you're figure out what your stop loss is and then figuring how big or small your pip ammount is?

Create an Excel calculator. By doing so, you'll learn the math, which you really should know. Once done, you can know beforehand exactly what your position size will be for any pip amount.

First, how do you know that your strategy works, if you have used no money management with it?

Before you start to trade you should know your math in your head.

Every day, before you start to trade you know the exact amount you are trading with, then you also know the exact amount you are willing to risk on each trade.

Knowing that, it is easy to calculate, in your head, if you can open 1, 2 or more lots, depending on how wide your stop loss is.

Money management is the most important factor in trading; Systems, strategies and timing are all secondary to money management.