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Code to work out lot size based on risk

  • #1
  • First Post: Aug 31, 2011 6:26am Aug 31, 2011 6:26am
I cannot seem to find definitive code that takes a risk %, the stop loss size in pips and equity/balance, and works out the lot size based on those factors ?

I've tried a number of things but my math is eluding me right now and its odd to see i cannot easily find it anywhere.

your help appreciated
thx
  • #2
  • Aug 31, 2011 7:55am Aug 31, 2011 7:55am
Try this , it's an EA not an indicator.
Attached File(s)
File Type: mq4 Visual Position Size Calculator.mq4   9 KB | 2,225 downloads
  • #3
  • Aug 31, 2011 8:33am Aug 31, 2011 8:33am
Quoting gorangel
Try this , it's an EA not an indicator.

The code calls the start() function from within the init() which is not wise. if the start function is to long it will cause the init() function to time out. The start() function is automaticly run once after the init() function has ended so the way this is coded it will cause the start() function to run twice at start up. once when its called and again when the init() function ends.

Keit

I dont personally use the typical percent risk formula as most use, I perfer to adjust leverage base on results of trading.
Trader Keit ... Methods Of A Dirt Road Mad Man....
  • #4
  • Aug 31, 2011 9:00am Aug 31, 2011 9:00am
Quoting pipmyride
I cannot seem to find definitive code that takes a risk %, the stop loss size in pips and equity/balance, and works out the lot size based on those factors ?
Here:
http://www.forexfactory.com/showthre...21#post4128321

PHP Code
#define POINT 1   // Value of one point in pips. 4digitbroker=1, 5digitbroker=10 etc.

double CalcLotSize(int iSL,double dRisk,double dBalance) {      
  double dRiskCapital=dRisk/100*dBalance;
  return( dRiskCapital/(iSL*MarketInfo(Symbol(),MODE_TICKVALUE)*POINT));
}
  • #5
  • Aug 31, 2011 9:11am Aug 31, 2011 9:11am
CockeyedCowboy I'm sorry but i don't understand your answer i'm not a coder.
I've found that EA in a different forum and i've been using it without any problems. It's fairly easy for me , imput the risk percentage , drag and drop entry point and SL lines and that's it.
  • #6
  • Aug 31, 2011 10:24am Aug 31, 2011 10:24am
gorangel

it may not cause any problems but this is what MT has to say;


Quote

....

It is not recommended to call start() function from init() function or to perform trade operations, as chart data, market prices, etc. can be incomplete by the moment of the module initialization. The init() and deinit() functions must finish their working as soon as possible and, in no case, shall they loop when trying to start its full-fledged working before the start() function is called.

....


What they are saying is that if you call the start from the init it MAY cause the init not to complete its purpose but time out. That is if the start function is to long to be completed with in the given time allow by MT.


This is the init function of your code look at the end to see my comments


Inserted Code
int init()
  {
   int y = START_Y;
   if (MarketInfo("EURUSD",MODE_DIGITS) == 5)
      pippette = 10;
 
   ObjectCreate(SL_LINE_TEXT,OBJ_HLINE,0,0,iHigh(Symbol(),PERIOD_D1,0));
   ObjectSet(SL_LINE_TEXT,OBJPROP_STYLE,STYLE_DOT);
   ObjectSet(SL_LINE_TEXT,OBJPROP_COLOR,Red);
   if (PendingOrder)
   {
      ObjectCreate(PRICE_LINE_TEXT,OBJ_HLINE,0,0,iLow(Symbol(),PERIOD_D1,0));
      ObjectSet(PRICE_LINE_TEXT,OBJPROP_STYLE,STYLE_DOT);
      ObjectSet(PRICE_LINE_TEXT,OBJPROP_COLOR,Green);
   }
   ObjectCreate(LOTS_LABEL_TEXT,OBJ_LABEL,0,0,0,0,0);
   ObjectSet(LOTS_LABEL_TEXT,OBJPROP_XDISTANCE,START_X);
   ObjectSet(LOTS_LABEL_TEXT,OBJPROP_YDISTANCE,y);
   if (ShowDetailedInfo)
   {
      y += LINE_SPACE_1;
      ObjectCreate(ORDER_LABEL_TEXT,OBJ_LABEL,0,0,0,0,0);
      ObjectSet(ORDER_LABEL_TEXT,OBJPROP_XDISTANCE,START_X);
      ObjectSet(ORDER_LABEL_TEXT,OBJPROP_YDISTANCE,y);
      y += LINE_SPACE_2;
      ObjectCreate(SL_LABEL_TEXT,OBJ_LABEL,0,0,0,0,0);
      ObjectSet(SL_LABEL_TEXT,OBJPROP_XDISTANCE,START_X);
      ObjectSet(SL_LABEL_TEXT,OBJPROP_YDISTANCE,y);
      y += LINE_SPACE_2;
      ObjectCreate(LEV_LABEL_TEXT,OBJ_LABEL,0,0,0,0,0);
      ObjectSet(LEV_LABEL_TEXT,OBJPROP_XDISTANCE,START_X);
      ObjectSet(LEV_LABEL_TEXT,OBJPROP_YDISTANCE,y);
      y += LINE_SPACE_2;
      ObjectCreate(PIP_VAL_LABEL_TEXT,OBJ_LABEL,0,0,0,0,0);
      ObjectSet(PIP_VAL_LABEL_TEXT,OBJPROP_XDISTANCE,START_X);
      ObjectSet(PIP_VAL_LABEL_TEXT,OBJPROP_YDISTANCE,y);
      y += LINE_SPACE_2;
      ObjectCreate(RISK_LABEL_TEXT,OBJ_LABEL,0,0,0,0,0);
      ObjectSet(RISK_LABEL_TEXT,OBJPROP_XDISTANCE,START_X);
      ObjectSet(RISK_LABEL_TEXT,OBJPROP_YDISTANCE,y);
   }
 
   [color=red]start();   [/color][color=blue]// this line calls the start function[/color]
 
//----
   return(0);
  }
 
 
[color=blue]// MT will run the start function again at this point which will run the start function twict in a row.[/color]








Quoting gorangel
CockeyedCowboy I'm sorry but i don't understand your answer i'm not a coder.
I've found that EA in a different forum and i've been using it without any problems. It's fairly easy for me , imput the risk percentage , drag and drop entry point and SL lines and that's it.
Trader Keit ... Methods Of A Dirt Road Mad Man....
  • #7
  • Aug 31, 2011 7:32pm Aug 31, 2011 7:32pm
CockeyedCowboy, thanks for your reply but as i told you , it's not my code and i'm no coder, so i have no idea of what you are talking about.
Belive me , i love to know ,but my coding skills are close to none , i just know how to decorate indicators or change the default settings in the code.
When i realize how important money management is in trading, i started to search for a simple tool that help me with the math of calculating the lot size,and after a few weeks i found that EA.
I never have a problem with it ,my mt4 platform never crashes or freezes when i use it , and the calculations seems to be correct. (Check the attachment)
Maybe you can fix/improve the code of the EA so we all can benefit from it.
Please forgive my English (is limited like my coding skills)
Attached Image (click to enlarge)
Click to Enlarge Name: visualea.jpg Size: 73 KB
  • #8
  • Aug 31, 2011 10:21pm Aug 31, 2011 10:21pm
I usually use this function:

PHP Code
double CalcLots(double Risk)
{
   double tmpLot = 0, MinLot = 0, MaxLot = 0;
   MinLot = MarketInfo(Symbol(),MODE_MINLOT);
   MaxLot = MarketInfo(Symbol(),MODE_MAXLOT);
   tmpLot = NormalizeDouble(AccountBalance()*Risk/1000,2);
      
   if(tmpLot < MinLot)
   {
      Print("LotSize is Smaller than the broker allow minimum Lot!");
      return(MinLot);
   } 
   if(tmpLot > MaxLot)
   {
      Print ("LotSize is Greater than the broker allow minimum Lot!");
      return(MaxLot);
   } 
   return(tmpLot);
}
Stop asking ChatGPT for broken MQL code. VisualMQL it instead.
  • #9
  • Aug 31, 2011 11:33pm Aug 31, 2011 11:33pm
Quoting CodersGuru
I usually use this function:

[php]
double CalcLots(double Risk)
{
double tmpLot = 0, MinLot = 0, MaxLot = 0;
MinLot = MarketInfo(Symbol(),MODE_MINLOT);
MaxLot = MarketInfo(Symbol(),MODE_MAXLOT);
tmpLot = NormalizeDouble(AccountBalance()*Risk/1000,2);

if(tmpLot < MinLot)
{
Print("LotSize is Smaller than the broker allow minimum Lot!");
return(MinLot);
}
if(tmpLot > MaxLot)
{
Print ("LotSize is Greater than the broker allow minimum Lot!");
return(MaxLot);
}...
Guru so you dont use SL in your calculation ?
  • #10
  • Aug 31, 2011 11:35pm Aug 31, 2011 11:35pm
Quoting Xaphod
Here:
http://www.forexfactory.com/showthre...21#post4128321

PHP Code
#define POINT 1   // Value of one point in pips. 4digitbroker=1, 5digitbroker=10 etc.

double CalcLotSize(int iSL,double dRisk,double dBalance) {      
  double dRiskCapital=dRisk/100*dBalance;
  return( dRiskCapital/(iSL*MarketInfo(Symbol(),MODE_TICKVALUE)*POINT));
}
Thx Xaphod - do u have a solution to auto-detect the broker point instead of having a different version for each broker ?

thx
  • #11
  • Aug 31, 2011 11:45pm Aug 31, 2011 11:45pm
how hard is it to just write the code?!?

if digits = 3 then it's a jpy pair on a pipette broker.
if digits = 5 it's a non jpy pair on a pipette broker.

if digits = 2 or 4 then it's a non pipette broker!
Congratulations ScalaFX for coming out of the closet!
  • #12
  • Edited 12:12pm Sep 1, 2011 12:47am | Edited 12:12pm
Quoting pipmyride
Thx Xaphod - do u have a solution to auto-detect the broker point instead of having a different version for each broker ?

thx
Basic:
PHP Code
int PipMult() {
 if (Digits==3 || Digits==5) 
    return(10); 
  else if (Digits==2 || Digits==4) 
    return(1); 
  else
    return(1);            
}
Cool:
PHP Code
int PipMult[]={1,10,1,10,1,10,100};
.
.
Factor=PipMult[Digits];
So, you could do this:
PHP Code
double CalcLotSize(int iSL,double dRisk,double dBalance) {
  int iPipMult[]={1,10,1,10,1,10,100};       
  double dRiskCapital=dRisk/100*dBalance; 
  return( dRiskCapital/(iSL*MarketInfo(Symbol(),MODE_TICKVALUE)*iPipMult[Digits])); 
}
  • #13
  • Sep 1, 2011 4:32am Sep 1, 2011 4:32am
Inserted Code
        double PipPoint[] = {1, 0.1, 0.01, 0.010, 0.0001, 0.0001};

         SlPoints = Sl*PipPoint[Digits];         
         
         LotDigits = MathRound(-MathLog(MarketInfo(Symbol(), MODE_LOTSTEP))/MathLog(10));
         PointValue = MarketInfo(Symbol(), MODE_TICKVALUE)/(MarketInfo(Symbol(), MODE_TICKSIZE)/Point);
         Equity = AccountEquity();
         Lots = NormalizeDouble(Risk*Equity/(PointValue*SlPoints/Point), LotDigits);
  • #14
  • Sep 1, 2011 8:57am Sep 1, 2011 8:57am
Quoting Xaphod
[/php]So, you could do this:
PHP Code
double CalcLotSize(int iSL,double dRisk,double dBalance) {
  int iPipMult[]={1,10,1,10,1,10,100};       
  double dRiskCapital=dRisk/100*dBalance; 
  return( dRiskCapital/(iSL*MarketInfo(Symbol(),MODE_TICKVALUE)*iPipMult[Digits])); 
}
im really missing something here, using that exact formula i got:
Inserted Code
Using AccEquity 49770.04000000 , Risk 1.00000000 , SL size 36.00000000 = 23.37754079
  • #15
  • Sep 1, 2011 9:22am Sep 1, 2011 9:22am
Quoting pipmyride
im really missing something here, using that exact formula i got:
Might help if you said what pair it was for . . . it makes a difference.
20 pips a day isn't too much to ask . . .
  • #16
  • Edited 9:39am Sep 1, 2011 9:26am | Edited 9:39am
Quoting pipmyride
im really missing something here, using that exact formula i got:
Inserted Code
Using AccEquity 49770.04000000 , Risk 1.00000000 , SL size 36.00000000 = 23.37754079
using that exact formula i got:

EURUSD,M1: Capital=49770 Risk=1.0% Stoploss=36 Lots=1.38
AUDUSD,M1: Capital=49770 Risk=1.0% Stoploss=36 Lots=1.38

Same result on both 4 and 5 digit brokers
  • #17
  • Sep 1, 2011 9:33am Sep 1, 2011 9:33am
Quoting RaptorUK
Might help if you said what pair it was for . . . it makes a difference.
ok: AUDUSD
  • #18
  • Sep 1, 2011 9:35am Sep 1, 2011 9:35am
Quoting Xaphod
using that exact formula i got:
EURUSD,M1: Capital=49770 Risk=1.0% Stoploss=36 Lots=1.38
wtf
ok here is full code - showing where the print statement is & wot it output:
Inserted Code
   double Risk  = (MaxRisk/100)    * AccountEquity ();
   
   int iPipMult[]={1,10,1,10,1,10,100};       
   double tmpLot = Risk/(SL*MarketInfo(Symbol(),MODE_TICKVALUE)*iPipMult[Digits]); 

   
   Print("Using AccEquity " + AccountEquity() + " , Risk " + MaxRisk + " , SL size " + SL + " = " + tmpLot);
  • #19
  • Sep 1, 2011 9:47am Sep 1, 2011 9:47am
Well here is the script:
Attached File(s)
File Type: mq4 PosizionSize.mq4   1 KB | 1,673 downloads
  • #20
  • Sep 1, 2011 9:50am Sep 1, 2011 9:50am
Quoting Xaphod
using that exact formula i got:

EURUSD,M1: Capital=49770 Risk=1.0% Stoploss=36 Lots=1.38
AUDUSD,M1: Capital=49770 Risk=1.0% Stoploss=36 Lots=1.38

Same result on both 4 and 5 digit brokers
I get 1.3825 worked out on a calculator
20 pips a day isn't too much to ask . . .
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