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Lot Calculation

  • #1
  • First Post: Mar 4, 2016 11:32pm Mar 4, 2016 11:32pm
For years, I thought had this part down cold (trusted a broker's code). Now....., I'm not so sure. Which one below is correct?
Inserted Code
// a) Version based on what I've read so far:
Lot=(Risk_Percentage*Free_Margin)/(Dollars_Per_Pip_1_Standard_Lot*(StopLoss_Pips+Spread_Pips))
 
// b) Version IBFX has been handing out for years
Lot=(Risk_Percentage*Free_Margin)/(Lot_Size/Leverage);
  • #2
  • Mar 5, 2016 1:30am Mar 5, 2016 1:30am
LotSize = ((Balance * Risk%) / SL) / Pipvalue;

The reference can be equity instead of balance ...

Then the LotSize has to rounded with the right decimal according to account type (0.1 or 0.01).

With this calculation, if the SL is hit, your loss is the % you defined.
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Mar 5, 2016 2:11pm Mar 5, 2016 2:11pm
Quoting nondisclosure00
For years, I thought had this part down cold (trusted a broker's code). Now....., I'm not so sure. Which one below is correct? // a) Version based on what I've read so far: Lot=(Risk_Percentage*Free_Margin)/(Dollars_Per_Pip_1_Standard_Lot*(StopLoss_Pips+Spread_Pips)) // b) Version IBFX has been handing out for years Lot=(Risk_Percentage*Free_Margin)/(Lot_Size/Leverage);
Lot = ((risk parcentage in %)*(your balance))/ K*(price of open - price of close)

K = -1 for sell
K = +1 for buy

And I use the simple rule: For 1:200 I open orders with 0.2 - 0.8 lot per $1000 of my balance.
With kind regards
DenForex
  • #4
  • Mar 5, 2016 7:41pm Mar 5, 2016 7:41pm
2000 USD (deposit) * 100 (leverage size) = 200,000 USD - capital for trading in dollars

200 000 USD / 164 190 USD (100 000 GBP to be converted into dollars at the current rate of 1.6419) = 1.21 - the maximum possible number of lots.

1.21 * 10% = 0.12.
  • #5
  • Mar 7, 2016 10:35am Mar 7, 2016 10:35am
This is kind of what I thought. Multiple ways, multiple answers.
  • #6
  • Last Post: Mar 7, 2016 11:01am Mar 7, 2016 11:01am
I think the surest option - it is the one that works and tested experience.
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