How to manage risk percent I decided to bet?
Sep 06, 2013 at 05:37
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6 Replies
Membro Desde Jul 11, 2013
3 postagens
Sep 06, 2013 at 05:37
Hi.
I am a new trader.
I have readed a lot of articles and I have seen a lot of videos about manual and automatic trading. I am a developer too, so I did my own expert (https://www.myfxbook.com/members/rpalacios/pnd-ea/634782). Last month it worked very good (about 30% gain). This week it is not going well, but it was my fault because I start playing with same EA on differents pairs at same time and I forgot to control the number of orders on each pair.
Well, the question is: How should a trader manage the risk percent? I mean, differents traders talk about differents risk percents, but usually it always talk about 5 - 10%.
So, how I have invest that 5%?
Should I calculate the numbers of lots that represents the 5% of my capital?
Or do I set the stoploss such way that the lossing trade represents that 5%?
Or do I trade inside the 5% of equity, no mather how many orders or lots I manage?
Thanks in advance for yours answers!
I am a new trader.
I have readed a lot of articles and I have seen a lot of videos about manual and automatic trading. I am a developer too, so I did my own expert (https://www.myfxbook.com/members/rpalacios/pnd-ea/634782). Last month it worked very good (about 30% gain). This week it is not going well, but it was my fault because I start playing with same EA on differents pairs at same time and I forgot to control the number of orders on each pair.
Well, the question is: How should a trader manage the risk percent? I mean, differents traders talk about differents risk percents, but usually it always talk about 5 - 10%.
So, how I have invest that 5%?
Should I calculate the numbers of lots that represents the 5% of my capital?
Or do I set the stoploss such way that the lossing trade represents that 5%?
Or do I trade inside the 5% of equity, no mather how many orders or lots I manage?
Thanks in advance for yours answers!
Membro Desde Jun 24, 2013
6 postagens
Sep 06, 2013 at 13:45
i think the best advice i can give you is stay away from multiple orders unless you are scaling out.
Membro Desde Nov 21, 2011
1718 postagens
Sep 06, 2013 at 13:46
Hi,
Should I calculate the numbers of lots that represents the 5% of my capital? => So this depend how far is your SL
Or do I set the stoploss such way that the lossing trade represents that 5%? => I prefer to use a fix SL
Or do I trade inside the 5% of equity, no mather how many orders or lots I manage? I think so
This is what a use for one of my EA:
//___Parameters
extern bool Money_Management=true;
extern int RiskPercent=1;
extern double Lots=0.1;
//____ UTILITIES
// Automatic Lotsizing
double LotsOptimized()
{
double lot=Lots;
//---- select lot size
if (Money_Management) lot=NormalizeDouble(MathFloor(AccountFreeMargin()*RiskPercent/100)/100,3);
// lot at this point is number of standard lots
return(lot);
}
So Let's say the account is €1200 so Lotsize for any trades will be 0.12 whatever the SL.
I loose 10 pips so Account is now €1190, next trade will be 0.11.
Should I calculate the numbers of lots that represents the 5% of my capital? => So this depend how far is your SL
Or do I set the stoploss such way that the lossing trade represents that 5%? => I prefer to use a fix SL
Or do I trade inside the 5% of equity, no mather how many orders or lots I manage? I think so
This is what a use for one of my EA:
//___Parameters
extern bool Money_Management=true;
extern int RiskPercent=1;
extern double Lots=0.1;
//____ UTILITIES
// Automatic Lotsizing
double LotsOptimized()
{
double lot=Lots;
//---- select lot size
if (Money_Management) lot=NormalizeDouble(MathFloor(AccountFreeMargin()*RiskPercent/100)/100,3);
// lot at this point is number of standard lots
return(lot);
}
So Let's say the account is €1200 so Lotsize for any trades will be 0.12 whatever the SL.
I loose 10 pips so Account is now €1190, next trade will be 0.11.
Membro Desde Jul 11, 2013
3 postagens
Sep 06, 2013 at 14:59
Thanks for your answers!
Very helpful!
Very helpful!
Membro Desde Sep 16, 2013
19 postagens
Sep 16, 2013 at 12:57
wait, are you talking about risk per trade? If yes, than 5% is too high, i'd say something about 1,5%, especially if you're using EA.
Membro Desde Jul 11, 2013
3 postagens
Sep 16, 2013 at 20:34
Right now, we are not using stoploss, we are operating in a price range using a scalping EA we did. We are basing the risk on equity. I mean, if 100*Equity/Balance is less than X%, let EA open more orders while OrdersTotal()<Y.
But, since Sep/01 things are not going well. On August EA won about $1000. But now, equity is $3000 under balance.
So, we tried differents stoploss strategies, but no one let EA grow up.
So, we believe that, apart from EA buy/sell wrong conditions, we have to define a practical stoploss.
That is why I want to know how experienced traders use to define stoploss strategies.
But, since Sep/01 things are not going well. On August EA won about $1000. But now, equity is $3000 under balance.
So, we tried differents stoploss strategies, but no one let EA grow up.
So, we believe that, apart from EA buy/sell wrong conditions, we have to define a practical stoploss.
That is why I want to know how experienced traders use to define stoploss strategies.
Membro Desde Nov 21, 2011
1718 postagens
Sep 16, 2013 at 23:06
I just developped the StopLoss strategy below:
Opening trade with no SL and TP = X
Now if market doesn't go into trade's favor while EA is Long... if RSI < X then Modify Stop Loss X pips under Actual Price and TP = OpenPrice.
So I don't close this looser trade, I take the risk to loose X pips more but I try to exit @ 0 Pips.
Nothing fantastic... sometimes avoiding to loose pips, sometimes loosing a bit more!
This can be more suitable for a volatile pair.
Opening trade with no SL and TP = X
Now if market doesn't go into trade's favor while EA is Long... if RSI < X then Modify Stop Loss X pips under Actual Price and TP = OpenPrice.
So I don't close this looser trade, I take the risk to loose X pips more but I try to exit @ 0 Pips.
Nothing fantastic... sometimes avoiding to loose pips, sometimes loosing a bit more!
This can be more suitable for a volatile pair.
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