Explaining How Risk % is Calculated
- Thread starter mjkidd27
- Start date
Hi there,
So essentially if you decide to use Risk% instead of a Lotsize, it will deduct x% with every new trade.
For example if your Risk% is set to 1, it means that each new trade that opens will open with 1% out of your total balance.
Limiting wise, of course if your Risk% is set too high, your balance is too low it might trigger the Margin levels.
So essentially if you decide to use Risk% instead of a Lotsize, it will deduct x% with every new trade.
For example if your Risk% is set to 1, it means that each new trade that opens will open with 1% out of your total balance.
Limiting wise, of course if your Risk% is set too high, your balance is too low it might trigger the Margin levels.
mjkidd27
Member
@Chris Thank you for the reply. A few follow up Q's...1) Is it calculating based on balance or equity? It appears to use equity. 2) Does the bot take into account the current Margin Level %? In other words, if the margin level is low and therefore the account is stressed out (ex. say around 100% or less, will the bot stop opening new trades which would only further deplete margin level? 3) If the answer to #2 is no, what would be the recommended way to stop the bot from opening new trades?
Hi there,
So just to clarify. When using Risk% your Lotsize has to be on 0, otherwise the Risk% won't kick in.
As for your previous entry. Yes it's based on equity, it does take into calculation the Margin as well.
A good way to limit the trades is the Max Orders function. You can basically instruct the bot to open X amount of trades per pair
mjkidd27
Member
Yes, I understand the Lot Size needs to be set to zero, and it has been. I'm not looking to limit trades, just trying to understand the calculation it uses to determine lot size when Risk% is used. Like I said, I have a 1% set but my equity was around $18,000...so why it was taking on a lot size of .56 and .62 is a mystery to me. Can you share the calculation?
So if your Risk% is set to 1. That means that each trade will open with 1% out of your total BALANCE.
Now the prices on said trade might differ due to the leverage you have on your account for example.
mjkidd27
Member
Ok, that was my understanding too. And for the most part, the bot has been opening trades with what would appear to be a 1% position. However, lately it has seen a significant jump in position size which does not correlate to a 1% position size based on balance. My balance is currently at $26,026 and the most recent positions have been upwards of .59 and .60. Could this be a bug?
Could be, could you send me an email over at [email protected] whenever you got the time?
