I've been trading daily charts of equities, etc on a UK spread betting broker and I put together this indicator and a script for placing a pending order. The indicator gives useful information about how much you can trade for a certain risk, etc. Full explanation below...
Spread... This is the spread in whole points so 0.5 for Barc let's say is half a penny.
ATR... The average true range in whole points for this pair over the last 20 days.
Margin Required... The margin required to open a trade at £1 per point.
Max Trade... The maximum trade you can take on this instrument considering the margin required and your current equity. Note that this doesn't take into account how much margin you have already used.
£x at x ATR... These are definable in the settings. Enter the amount you want to risk on this trade. Enter the ATR you want to use for the stop, I recommend 2. The figure given is the amount to risk per point to risk the amount you want to risk if you use the ATR stop you entered.
MR... This is the margin requirement that would be incurred if you placed the trade in the section above. I find this useful as sometimes the margin requirement can be huge and so make it not worth taking the trade and tying up all your capital in one trade.
The script places a pending order above/below the highest/lowest of a certain number of candles.
Manual lotsize... This allows you to enter your own lot size that you want to use rather than have it calculated as in the above indicator. If you leave it as 0 then it will calculate it all for you.
Risk... How much you want to risk per trade.
Buyorsell... Do you want to put a pending order above the previous candles or below? 0 is for sell, 1 is for buy.
Demarktrendsetting... This is called this because I coded the original script for a friend and this is what he understood it by. In fact it is similar to a donchian channel. In effect you just need to put in the number of candles you want to look back and then it uses that level to place the stop above or below. If you enter 1 then it will use the current open candle.
Delete pending... Use this if there is already a pending order in place and you want to delete it before placing the new one.
ATR mult... The multiple of ATR that you want to put the stop away from the entry. I use 2.
I think that about covers everything. One thing to say about buy orders is that if your broker is quoting a silly spread then the pending order will be placed way above where you want it as the script takes the spread into account.
I hope someone finds this useful? Thanks as ever to Hayseedfx and a few others who may recognise some of the coding in there.
I'm now accepting clients for training and mentoring on trading daily charts. If you would like to know more just get in touch.
Spread... This is the spread in whole points so 0.5 for Barc let's say is half a penny.
ATR... The average true range in whole points for this pair over the last 20 days.
Margin Required... The margin required to open a trade at £1 per point.
Max Trade... The maximum trade you can take on this instrument considering the margin required and your current equity. Note that this doesn't take into account how much margin you have already used.
£x at x ATR... These are definable in the settings. Enter the amount you want to risk on this trade. Enter the ATR you want to use for the stop, I recommend 2. The figure given is the amount to risk per point to risk the amount you want to risk if you use the ATR stop you entered.
MR... This is the margin requirement that would be incurred if you placed the trade in the section above. I find this useful as sometimes the margin requirement can be huge and so make it not worth taking the trade and tying up all your capital in one trade.
The script places a pending order above/below the highest/lowest of a certain number of candles.
Manual lotsize... This allows you to enter your own lot size that you want to use rather than have it calculated as in the above indicator. If you leave it as 0 then it will calculate it all for you.
Risk... How much you want to risk per trade.
Buyorsell... Do you want to put a pending order above the previous candles or below? 0 is for sell, 1 is for buy.
Demarktrendsetting... This is called this because I coded the original script for a friend and this is what he understood it by. In fact it is similar to a donchian channel. In effect you just need to put in the number of candles you want to look back and then it uses that level to place the stop above or below. If you enter 1 then it will use the current open candle.
Delete pending... Use this if there is already a pending order in place and you want to delete it before placing the new one.
ATR mult... The multiple of ATR that you want to put the stop away from the entry. I use 2.
I think that about covers everything. One thing to say about buy orders is that if your broker is quoting a silly spread then the pending order will be placed way above where you want it as the script takes the spread into account.
I hope someone finds this useful? Thanks as ever to Hayseedfx and a few others who may recognise some of the coding in there.
I'm now accepting clients for training and mentoring on trading daily charts. If you would like to know more just get in touch.
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