Calculating maximum position size based on stop-loss and stop-out level
- Thread starter ice911
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You mean you want to calculate the maximum position size you can trade with those parameters? If so, you can try using Position Size Calculator on that account and calculate the maximum size.
i have calculate this 40 pip of loss=400$ for usdjpy
for a balance of 600$
leverage 500
stop out 50%
so i think its the 600-200
(600*105.331*500)/(105.331*100000)= 3 Lots
(400*105.331*500)/(105.331*100000)= 2 lots
so i think its 3 lots -2 lots= 1 lot of trading size to hold down to 40 pip of loss
but the suporrt of my broker say this
please try to understand, the maximum you can place 2 lots. and if you want to place 1 lot then your calculation is perfect.
so iam little confused
thanks for enlighten me
for a balance of 600$
leverage 500
stop out 50%
so i think its the 600-200
(600*105.331*500)/(105.331*100000)= 3 Lots
(400*105.331*500)/(105.331*100000)= 2 lots
so i think its 3 lots -2 lots= 1 lot of trading size to hold down to 40 pip of loss
but the suporrt of my broker say this
please try to understand, the maximum you can place 2 lots. and if you want to place 1 lot then your calculation is perfect.
so iam little confused
thanks for enlighten me
It would be helpful to know what exactly you are trying to calculate here.
What I can tell you is that if you open a 3 lots trade with the given conditions, you will have $600 in used margin and ~$600 in equity (minus spread). Once the loss reaches 40 pips (~$120, closer to $114 actually), your equity would be about $480, which would still be much higher than 50% of your used margin.
It looks to me, you can open a 3 lots trade with 40 pips stop-loss without a problem with your $600 balance, 1:500 leverage, and 50% stop-out level.
What I can tell you is that if you open a 3 lots trade with the given conditions, you will have $600 in used margin and ~$600 in equity (minus spread). Once the loss reaches 40 pips (~$120, closer to $114 actually), your equity would be about $480, which would still be much higher than 50% of your used margin.
It looks to me, you can open a 3 lots trade with 40 pips stop-loss without a problem with your $600 balance, 1:500 leverage, and 50% stop-out level.
Oops... It's actually ~$1,200, not ~$120, if we are talking about standard pips (0.01). My statement above is still correct if we are talking about fractional pips (0.001).
The value of one standard pip when trading USD/JPY is 100,000 / Ask / 100 * Position_Size_in_Lots:
100,000 / 105.45 / 100 * 3 = $28.45
Hence, 40 standard pips loss x $28.45 is $1,138.
For fractional pips, the value is 1/10 of that.
The value of one standard pip when trading USD/JPY is 100,000 / Ask / 100 * Position_Size_in_Lots:
100,000 / 105.45 / 100 * 3 = $28.45
Hence, 40 standard pips loss x $28.45 is $1,138.
For fractional pips, the value is 1/10 of that.
check the discussion with my broker
Welcome to Coinexx
Patrik Kane 00:56
Hello Me
Hello and welcome to our live chat. I trust you are doing well today.
How may I Assist you?
Mr.e 00:57
hi wath is the trade size for 1000$ lev 500 usdjpy
Patrik Kane 00:57
Please allow me a min to check.
With 500x leverage you can go upto 5 lots of USDJPY with $1000 balance.
Me 01:02
ok and if i want to hold a position down to 40 pip of loss ?
are you there ?
Patrik Kane 01:05
Please bear with me
If you hold one position down to 40 pip of loss, then you can place 3 lots more on USDJPY.
Me 01:08
show me your calc pls
Patrik Kane 01:09
Allow me a min.
1 pip movement is equal to $10. and 40Pips down will be $400.
Then remaining 600 free margin is your account, which you cna use to place 3 lots os USDJPY.
Me 01:13
i do not understand
Patrik Kane 01:17
To place a 1 lot of USDJPY in your account, you need 199.98 USD ( aproxx 200 USD ) Now if you hold a poistion down to 40Pips, you are holding $400 of free margin as 1 pip movement is equal to $10.
Me 01:19
ok does is will be ok with with the stop out ?
Patrik Kane 01:22
Our margin call and stop out levels are 70% and 50% respectively.
if used margin is $1000 then in this case if equity drops $500, then your positions we will be stopped out by the system.
Me 01:23
ok but i do not want to be stop
does the trade will hold the stop out
Patrik Kane 01:26
Trade will stopout if you your equity drops $500
Me 01:26
my stop out is 50%
Patrik Kane 01:26
You can request for the 150% bonus if you want.
bonus will increase your equity and increase your margin to trade more number of lots.
Me 01:27
ok and with the 40 pip of sl does it will go to 50% of stop out or no ?
Patrik Kane 01:29
If you choose bonus, then your stop out level will be changed .
Me 01:30
i do not want the bonus
Read
Patrik Kane 01:30
Okay
Patrik Kane 01:30
Is there anything else I can assist you with for today?
Me 01:30
no thanks you helped me bye
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so in resume the formula is this
1000$ of balance
40 pip of loss=400$
((1000)*105.331*500)/(105.331*100000)= 5 lots
((400)*105.331*500)/(105.331*100000)= 2 lots
so its 5 lots-2 lots= 3 lots of trading size
Welcome to Coinexx
Patrik Kane 00:56
Hello Me
Hello and welcome to our live chat. I trust you are doing well today.
How may I Assist you?
Mr.e 00:57
hi wath is the trade size for 1000$ lev 500 usdjpy
Patrik Kane 00:57
Please allow me a min to check.
With 500x leverage you can go upto 5 lots of USDJPY with $1000 balance.
Me 01:02
ok and if i want to hold a position down to 40 pip of loss ?
are you there ?
Patrik Kane 01:05
Please bear with me
If you hold one position down to 40 pip of loss, then you can place 3 lots more on USDJPY.
Me 01:08
show me your calc pls
Patrik Kane 01:09
Allow me a min.
1 pip movement is equal to $10. and 40Pips down will be $400.
Then remaining 600 free margin is your account, which you cna use to place 3 lots os USDJPY.
Me 01:13
i do not understand
Patrik Kane 01:17
To place a 1 lot of USDJPY in your account, you need 199.98 USD ( aproxx 200 USD ) Now if you hold a poistion down to 40Pips, you are holding $400 of free margin as 1 pip movement is equal to $10.
Me 01:19
ok does is will be ok with with the stop out ?
Patrik Kane 01:22
Our margin call and stop out levels are 70% and 50% respectively.
if used margin is $1000 then in this case if equity drops $500, then your positions we will be stopped out by the system.
Me 01:23
ok but i do not want to be stop
does the trade will hold the stop out
Patrik Kane 01:26
Trade will stopout if you your equity drops $500
Me 01:26
my stop out is 50%
Patrik Kane 01:26
You can request for the 150% bonus if you want.
bonus will increase your equity and increase your margin to trade more number of lots.
Me 01:27
ok and with the 40 pip of sl does it will go to 50% of stop out or no ?
Patrik Kane 01:29
If you choose bonus, then your stop out level will be changed .
Me 01:30
i do not want the bonus
Read
Patrik Kane 01:30
Okay
Patrik Kane 01:30
Is there anything else I can assist you with for today?
Me 01:30
no thanks you helped me bye
Delivered
Powered by
so in resume the formula is this
1000$ of balance
40 pip of loss=400$
((1000)*105.331*500)/(105.331*100000)= 5 lots
((400)*105.331*500)/(105.331*100000)= 2 lots
so its 5 lots-2 lots= 3 lots of trading size
Unfortunately, that formula is incorrect. If you take a 3 lot USD/JPY position with $1,000 balance, 1:500 leverage, 50% stop-out level, and 105.331 current USD/JPY ask, you will get stopped out before you reach your 40 pips stop loss.
Because with 3 lots, 40 pips loss on USD/JPY is $1,139.27 - you would have to get into negative equity on your $1,000 account balance.
The correct formula to determine the maximum position size for USD/JPY based on initial balance, SL, stop-out level, leverage, and the USD/JPY Ask rate:
In your case:
Here is how to arrive at this formula:
Please note, that the USD/JPY Ask rate to use here is the one that will be at the time of the position closing (i.e., your stop-loss level).
Please let me know if you still need help figuring this out.
Because with 3 lots, 40 pips loss on USD/JPY is $1,139.27 - you would have to get into negative equity on your $1,000 account balance.
The correct formula to determine the maximum position size for USD/JPY based on initial balance, SL, stop-out level, leverage, and the USD/JPY Ask rate:
Code:
Size = Balance * Leverage / (100,000 * StopOut + Pip_Value * SL * Leverage)
In your case:
Code:
Size = $1,000 * 500 / (100,000 * 0.5 + $9.49 * 40 * 500) = 500,000 / (50,000 + 189,800) = 2.085 lots
Here is how to arrive at this formula:
Code:
StopOut = Equity / Used_Margin Equity = Balance - Loss Loss = Size * SL * Pip_Value Pip_Value = 1,000 / USDJPY_Ask = 1,000 / 105.331 = $9.49
Code:
SL = 40 pips Used_Margin = Size * 100,000 / Leverage StopOut = 50% = 0.5 Leverage = 500 Balance = $1,000
Please let me know if you still need help figuring this out.
yes its a metatrader EA its forex fury robot the results are perfect 20:00 gm+3 usdjpy
https://www.myfxbook.com/members/forexfuryreal/fury-audusd--usdjpy/5162344i had loss without the 40 pip loss formula of Enivid
but i think now that will work
https://www.myfxbook.com/members/forexfuryreal/fury-audusd--usdjpy/5162344i had loss without the 40 pip loss formula of Enivid
but i think now that will work
Because you have a small error in your position size formula:
(E8/$F$4)*1000 should be (1000/$F$4)
Code:
=E8*$G$1/(100000*$J$1+(E8/$F$4)*1000*$M$2*$G$1)
(E8/$F$4)*1000 should be (1000/$F$4)
There is some problem in your spreadsheet. If you go to the formula in F9 and press Enter, it will recalculate the position size to be 2.089 (the correct one).
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