Position Sizer
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It's for you to enter. It's impossible to read from the MQL4/MQL5 code.
Hi. I want my trailing stop to be activated after my breakeven. So for example, supposing my order would be Entry $100.00 SL $90.00, TP $120.00, I want breakeven at price level $110.00 (Half of my TP) and at this point want my SL to be automatically set to $100. Only then I would want the trailing stop to activate at minus $5 of the current price. In this case, would it be correct to put 500 in Trailing stop and 1000 in breakeven in the Trading Tab?
I tried this setting, but the original SL was immediately ignored and was set to trailing stop at minus $5 of the order price. Can you let me know how to set for my purpose?
I tried this setting, but the original SL was immediately ignored and was set to trailing stop at minus $5 of the order price. Can you let me know how to set for my purpose?
This isn't possible with the Position Sizer. You'd need to use another EA to trail a stop for you in that case. For example Trailing Stop on Profit.
Hi everyone,
I’m seeking help with an issue in Position Sizer (v3.14) on MetaTrader 5. Whenever I try to execute a trade for ETHUSD.ip, the tool blocks the trade with the following error:
"Not taking a trade - infinite total potential risk."
Can anyone help me to solve the issue problem.
Can any one assist or share the solution for this issue.
I’m seeking help with an issue in Position Sizer (v3.14) on MetaTrader 5. Whenever I try to execute a trade for ETHUSD.ip, the tool blocks the trade with the following error:
"Not taking a trade - infinite total potential risk."
Can anyone help me to solve the issue problem.
Post automatically merged:
Can any one assist or share the solution for this issue.
Attachments
Envid Administrator Do You Think in the Future You can add Ryan Jones Fixed Ration Position Sizing Ratio Money Management Delta(Profits) to the Positionsizer EA? Fixed Ratio Will help traders
I)Ryan Jones Fixed Ration Position Sizing Ratio https://whatheheckaboom.wordpress.com/2013/05/27/fixed-ratio-position-sizing/
Just a note about the fixed ratio position sizing method shared by Ryan Jones in his book The Trading Game. This mainly applies to trading futures. It (can be used for Forex As Well Whatever Your Delta Profit Amount
Is Which Can Be $1,000 in Profits) You increase your lot size by A)Standard lots = 1 Lots To 2 Lots or B)Mini Lots = 0.10 Mini to 0.20 Mini Lots or C)0.01 Micro Lots to 0.02 Micro Lots While Still Maintaining Your
0.22%-2% Risk Per Trade. You only become aggressive once you reach your Delta Profit Amount so you can accelerate your return on Capital as quickly and efficient as possible.
Essentially, you add one contract once EACH of the existing contracts have brought in a certain amount of profit. The amount of profit required is called “delta”. This method ignores what the starting capital amount is.
Delta Example = $5,000, you are currently trading 2 contracts, and you have a $40,000 capital base.
To be able to trade 3 contracts, each of the 2 contracts must make $5,000 of profits, for a total of $10,000 profits, before you are allowed to add the 3rd contract to your trading size.
That means you will add your 3rd contract when your capital reaches $50,000.
4th contract will be added when your capital reaches $50,000 + 3*$5,000 = $65,000
5th contract will be added when your capital reaches $65,000 + 4*$5,000 = $85,000
And so on…
However once your capital drops back below $85,000, you need to reduce your contract size back to 4. And when your capital drops below $65,000, you need to reduce your contract size back to 3.
There is a mathematical formula to calculate the number of contracts that you can trade.
If you started off with capital K and traded 1 contract, and let the delta be D. Then
First calculate P = Current capital – K. That is your accumulated profits from your original capital.
Number of contracts to trade N = 0.5 + 0.5 * Sqrt ( 1 + 8 * P / D )
If you started off with capital K and traded X contracts, and delta is D. Then
P = Current capital – K
Number of contracts to trade N = 0.5 + 0.5 * Sqrt ( 4*(X^2) – 4*X + 1 + 8 * P/D )
For those who are curious, the derivation of the formulas above goes like this
Assume original capital = K0, original number of contracts traded = L0
K1 = K0 + L0 * D
K2 = K1 + L1 * D = K0 + D * (L0 + L1)
K3 = K2 + L2 * D = K0 + D * (L0 + L1 + L2)
K3 – K0 = D * (L0 + L1 + L2)
P = D * (L0 + L1 + L2)
P / D = Sum of arithmetic progression starting with L0 = 0.5 * n * ( 2*L0 + (n – 1) ) where
n is the number of terms
L(n) = L(n-1) + 1.
Now re-arrange the terms, solve the quadratic equation, and you will get the formulas above.
II)Fixed Ratio Betting in Trading https://www.daytrading.com/fixed-ratio-betting
Fixed ratio betting is a money management strategy used in trading to determine position sizing. This method tries to grow an account systematically while managing risk. Unlike most other position sizing techniques, Fixed ratio betting adjusts position sizes based on account growth, allowing traders to potentially increase their profits as their account balance grows.
Systematic Growth: Fixed ratio betting increases position sizes as your account grows.
Formula-Driven Use the formula: Units = Square root of (Account Balance / (2 * Delta)) to calculate position sizes.
Delta Choose your delta carefully: It determines how aggressively your position sizes increase. A smaller delta is more aggressive, while a larger delta is more conservative.
Risk Management: The system ties position sizes to account balance, helping prevent overexposure during drawdowns.
Ryan Jones A trader – via his 1999 book “The Trading Game” – is credited with developing and popularizing a specific fixed ratio betting method known as “The 10% Rule.”
This approach involves increasing position size by 10% for every 10% increase in account equity. Jones sought to create a position sizing method that would allow traders to increase their position sizes as their accounts grew, without exposing them to excessive risk.
Advantages of Fixed Ratio Betting
Fixed ratio betting offers several benefits to traders:
01 Systematic Account Growth: Increasing position sizes as the account grows means traders can potentially accelerate their profits without taking on disproportionate risk.
02 Risk Management: The system inherently manages risk by tying position sizes to account balance. This prevents traders from overexposing themselves during drawdowns.
03 Flexibility Traders can adjust the delta to suit their risk tolerance and trading style. Accordingly, the system is adaptable to various markets and strategies.
04 Psychological Benefits: Fixed ratio betting provides a clear, objective framework for position sizing. Like with every aspect of trading, it’s good to have systems in place to reduce emotional decision-making.
05 Tips for Successfully Using Fixed Ratio Betting Start Conservative
06 Begin with a larger delta to limit risk while you become familiar with the system.
07 If your position sizes create any type of emotion – excitement/relief when winning or annoyance/anger when losing – it’s a sign that position sizing needs to decrease.
08 Use Technology Use spreadsheets or calculators to automate calculations and reduce the potential for errors.***
09 Principle – The position size increases in a fixed proportion to the growth of the trading account. For example, a trader might add one contract for every $5,000 increase in account equity.
10 Outcome – This method tries to accelerate growth during winning streaks, as larger positions are taken when the account balance is high. Nonetheless, it can also lead to large drawdowns during losing streaks, as
the position size remains relatively large even as the account balance decreases.
11 Suitability – Fixed ratio betting is generally more suited to aggressive traders who are comfortable with higher risk and volatility in exchange for potentially greater returns. So risk management is, of course,
important.
III)Cross-Platform Expert Advisor: Money Management MT5 Example 11 July 2017 https://www.mql5.com/en/articles/3280 (Fixed Ratio Formula in MT4)
Fixed Ratio Money Management calculates the trade size in proportion to the current balance available on the account. This can be considered a special case of fixed lot money management except that in this type of money management, the lot size is adjusted automatically, rather than manually by the trader. If the account is increasing, the lot size would also increase after every threshold. If the lot size is decreasing, the lot size would also adjust accordingly.
Unlike fixed risk money management, fix ratio does not require a non-zero stop loss. This makes it ideal to use when trades do not require a stop loss, but whose exits are managed in a different manner (closing by profit/loss in the deposit currency, etc.).
The calculation of trade size based on fixed ratio money management is generally expressed in the following formula:
Volume = base_volume + (balance / balance_increase) * volume_increment Where:
Base_Volume – volume to be added to the total volume, regardless of account size
Balance – current balance on the account
Balance_increase – balance increase on the account to trigger an increase in the lot size
Volume_increment – volume to be added/subtracted from the total volume when the balance changes by balance_increase
As an example, suppose we have a base volume of 0.0 lot, and the volume should increase by 0.1 for every $1,000 on the account. The account is currently worth $2,500. The total volume is therefore calculated as follows:
Volume = 0 + (2500 / 1000) * 0.1 = 0.25 lot
This method has many variations. One of these is the method where the lot size is updated only at certain levels (this is the one implemented in fixed ratio money management). For example, in the example mentioned earlier, the calculated volume was 0.25 lot, but in some, it may remain 0.2 lot, and would only increase to 0.3 lot once the balance reaches or exceeds $3,000.
Its UpdateLotSize method can be implemented like the following:
bool CMoneyFixedRatioBase::UpdateLotSize(const string symbol,const double price,const ENUM_ORDER_TYPE type,const double sl=0)
{
m_symbol=m_symbol_man.Get(symbol);
double last_volume=m_volume;
if(CheckPointer(m_symbol))
{
double balance=m_equity==false?m_account.Balance():m_account.Equity();
m_volume=m_volume_base+((int)(balance/m_balance_inc))*m_volume_inc;
m_balance=balance;
}
return last_volume-m_volume!=0;
}
IV)Limitless Opportunities with MT5 — Tester 19 June 2012 https://www.mql5.com/en/articles/392 (MT5 EA Free)
3.1.5. Money Management System
After setting the parameters for all symbols and analyzing the obtained results, you should make settings for the Money Management System.
The Money Management concerns the account as a whole. According to the Fixed Ratio money management method proposed by Ryan Jones, before you can add a lot to an existing number of lots, each of the existing lots shall "win" a certain number of points (which Jones called the "delta"). For example, we have a deposit of 300 dollars and trade with 1 mini lot; the delta of, say, the same 300 dollars would mean that we will increase to 2 mini lots only when we gain (with the 1 mini lot we have) 300 dollars.
Similarly, the lots will be increased to 3 only after 2 mini lots will gain the delta of 300 dollars (each). That is, the increase from 2 to 3 mini lots will be possible when we add to the existing 600 dollars another 2 С… $300 = $600, i.e. when having $1200; from 3 to 4 mini lots with the deposit of $1200 + ($300 С… 3) = $1200 + $900 = $2100, etc. Thus, "the number of contracts is proportional to the amount required to buy a new number of contracts", from where the method derives its name. The decrease in the number of lots follows the same scheme in reverse.
We can, of course, run the parameter optimization but let us better have a look at the manual settings. For a pretest, you can use the Opening prices only mode or OHLC on M1.
The Money Management System default parameter values are as shown in the table below:
PARAMETERS VALUE
Start Deposit 10000
Delta 300
Start Lot 0.10
Step Lot 0.01
V)Tooraj Amrabadi - Fixed Ratio Lot Calculator Script Is No longer Available on A) www.MQL5.com B) C) https://www.mql5.com/en/users/tooraj
VI)Table of Risks Fixed Ratio Spreadsheet
VII)Fixed Ratio vs Linear Money Management
VIII)DDSMM Money Management Works.mp4
IX)Apache OpenOffice 4.1.16 Free Software that let's you view spreadsheet & word documents for free Support Windows 32bit & 64bit, Linox, OS https://www.openoffice.org/download/index.html
X)LibreOffice logo26.2.1 Free Software To View Spreadsheet Supports Windows 64bit, Linox, Mac OS s As Well https://www.libreoffice.org/download/download-libreoffice/
PS I've Enclose DDSMM Excel Spreadsheet I realy don't understand what is the delta amount that the DDSMM Excel Spreadsheet is using to increase the lot size. & Other Spreadsheets that Have Fixed Ratio Money Management Techniques
I)Ryan Jones Fixed Ration Position Sizing Ratio https://whatheheckaboom.wordpress.com/2013/05/27/fixed-ratio-position-sizing/
Just a note about the fixed ratio position sizing method shared by Ryan Jones in his book The Trading Game. This mainly applies to trading futures. It (can be used for Forex As Well Whatever Your Delta Profit Amount
Is Which Can Be $1,000 in Profits) You increase your lot size by A)Standard lots = 1 Lots To 2 Lots or B)Mini Lots = 0.10 Mini to 0.20 Mini Lots or C)0.01 Micro Lots to 0.02 Micro Lots While Still Maintaining Your
0.22%-2% Risk Per Trade. You only become aggressive once you reach your Delta Profit Amount so you can accelerate your return on Capital as quickly and efficient as possible.
Essentially, you add one contract once EACH of the existing contracts have brought in a certain amount of profit. The amount of profit required is called “delta”. This method ignores what the starting capital amount is.
Delta Example = $5,000, you are currently trading 2 contracts, and you have a $40,000 capital base.
To be able to trade 3 contracts, each of the 2 contracts must make $5,000 of profits, for a total of $10,000 profits, before you are allowed to add the 3rd contract to your trading size.
That means you will add your 3rd contract when your capital reaches $50,000.
4th contract will be added when your capital reaches $50,000 + 3*$5,000 = $65,000
5th contract will be added when your capital reaches $65,000 + 4*$5,000 = $85,000
And so on…
However once your capital drops back below $85,000, you need to reduce your contract size back to 4. And when your capital drops below $65,000, you need to reduce your contract size back to 3.
There is a mathematical formula to calculate the number of contracts that you can trade.
If you started off with capital K and traded 1 contract, and let the delta be D. Then
First calculate P = Current capital – K. That is your accumulated profits from your original capital.
Number of contracts to trade N = 0.5 + 0.5 * Sqrt ( 1 + 8 * P / D )
If you started off with capital K and traded X contracts, and delta is D. Then
P = Current capital – K
Number of contracts to trade N = 0.5 + 0.5 * Sqrt ( 4*(X^2) – 4*X + 1 + 8 * P/D )
For those who are curious, the derivation of the formulas above goes like this
Assume original capital = K0, original number of contracts traded = L0
K1 = K0 + L0 * D
K2 = K1 + L1 * D = K0 + D * (L0 + L1)
K3 = K2 + L2 * D = K0 + D * (L0 + L1 + L2)
K3 – K0 = D * (L0 + L1 + L2)
P = D * (L0 + L1 + L2)
P / D = Sum of arithmetic progression starting with L0 = 0.5 * n * ( 2*L0 + (n – 1) ) where
n is the number of terms
L(n) = L(n-1) + 1.
Now re-arrange the terms, solve the quadratic equation, and you will get the formulas above.
II)Fixed Ratio Betting in Trading https://www.daytrading.com/fixed-ratio-betting
Fixed ratio betting is a money management strategy used in trading to determine position sizing. This method tries to grow an account systematically while managing risk. Unlike most other position sizing techniques, Fixed ratio betting adjusts position sizes based on account growth, allowing traders to potentially increase their profits as their account balance grows.
Systematic Growth: Fixed ratio betting increases position sizes as your account grows.
Formula-Driven Use the formula: Units = Square root of (Account Balance / (2 * Delta)) to calculate position sizes.
Delta Choose your delta carefully: It determines how aggressively your position sizes increase. A smaller delta is more aggressive, while a larger delta is more conservative.
Risk Management: The system ties position sizes to account balance, helping prevent overexposure during drawdowns.
Ryan Jones A trader – via his 1999 book “The Trading Game” – is credited with developing and popularizing a specific fixed ratio betting method known as “The 10% Rule.”
This approach involves increasing position size by 10% for every 10% increase in account equity. Jones sought to create a position sizing method that would allow traders to increase their position sizes as their accounts grew, without exposing them to excessive risk.
Advantages of Fixed Ratio Betting
Fixed ratio betting offers several benefits to traders:
01 Systematic Account Growth: Increasing position sizes as the account grows means traders can potentially accelerate their profits without taking on disproportionate risk.
02 Risk Management: The system inherently manages risk by tying position sizes to account balance. This prevents traders from overexposing themselves during drawdowns.
03 Flexibility Traders can adjust the delta to suit their risk tolerance and trading style. Accordingly, the system is adaptable to various markets and strategies.
04 Psychological Benefits: Fixed ratio betting provides a clear, objective framework for position sizing. Like with every aspect of trading, it’s good to have systems in place to reduce emotional decision-making.
05 Tips for Successfully Using Fixed Ratio Betting Start Conservative
06 Begin with a larger delta to limit risk while you become familiar with the system.
07 If your position sizes create any type of emotion – excitement/relief when winning or annoyance/anger when losing – it’s a sign that position sizing needs to decrease.
08 Use Technology Use spreadsheets or calculators to automate calculations and reduce the potential for errors.***
09 Principle – The position size increases in a fixed proportion to the growth of the trading account. For example, a trader might add one contract for every $5,000 increase in account equity.
10 Outcome – This method tries to accelerate growth during winning streaks, as larger positions are taken when the account balance is high. Nonetheless, it can also lead to large drawdowns during losing streaks, as
the position size remains relatively large even as the account balance decreases.
11 Suitability – Fixed ratio betting is generally more suited to aggressive traders who are comfortable with higher risk and volatility in exchange for potentially greater returns. So risk management is, of course,
important.
III)Cross-Platform Expert Advisor: Money Management MT5 Example 11 July 2017 https://www.mql5.com/en/articles/3280 (Fixed Ratio Formula in MT4)
Fixed Ratio Money Management calculates the trade size in proportion to the current balance available on the account. This can be considered a special case of fixed lot money management except that in this type of money management, the lot size is adjusted automatically, rather than manually by the trader. If the account is increasing, the lot size would also increase after every threshold. If the lot size is decreasing, the lot size would also adjust accordingly.
Unlike fixed risk money management, fix ratio does not require a non-zero stop loss. This makes it ideal to use when trades do not require a stop loss, but whose exits are managed in a different manner (closing by profit/loss in the deposit currency, etc.).
The calculation of trade size based on fixed ratio money management is generally expressed in the following formula:
Volume = base_volume + (balance / balance_increase) * volume_increment Where:
Base_Volume – volume to be added to the total volume, regardless of account size
Balance – current balance on the account
Balance_increase – balance increase on the account to trigger an increase in the lot size
Volume_increment – volume to be added/subtracted from the total volume when the balance changes by balance_increase
As an example, suppose we have a base volume of 0.0 lot, and the volume should increase by 0.1 for every $1,000 on the account. The account is currently worth $2,500. The total volume is therefore calculated as follows:
Volume = 0 + (2500 / 1000) * 0.1 = 0.25 lot
This method has many variations. One of these is the method where the lot size is updated only at certain levels (this is the one implemented in fixed ratio money management). For example, in the example mentioned earlier, the calculated volume was 0.25 lot, but in some, it may remain 0.2 lot, and would only increase to 0.3 lot once the balance reaches or exceeds $3,000.
Its UpdateLotSize method can be implemented like the following:
bool CMoneyFixedRatioBase::UpdateLotSize(const string symbol,const double price,const ENUM_ORDER_TYPE type,const double sl=0)
{
m_symbol=m_symbol_man.Get(symbol);
double last_volume=m_volume;
if(CheckPointer(m_symbol))
{
double balance=m_equity==false?m_account.Balance():m_account.Equity();
m_volume=m_volume_base+((int)(balance/m_balance_inc))*m_volume_inc;
m_balance=balance;
}
return last_volume-m_volume!=0;
}
IV)Limitless Opportunities with MT5 — Tester 19 June 2012 https://www.mql5.com/en/articles/392 (MT5 EA Free)
3.1.5. Money Management System
After setting the parameters for all symbols and analyzing the obtained results, you should make settings for the Money Management System.
The Money Management concerns the account as a whole. According to the Fixed Ratio money management method proposed by Ryan Jones, before you can add a lot to an existing number of lots, each of the existing lots shall "win" a certain number of points (which Jones called the "delta"). For example, we have a deposit of 300 dollars and trade with 1 mini lot; the delta of, say, the same 300 dollars would mean that we will increase to 2 mini lots only when we gain (with the 1 mini lot we have) 300 dollars.
Similarly, the lots will be increased to 3 only after 2 mini lots will gain the delta of 300 dollars (each). That is, the increase from 2 to 3 mini lots will be possible when we add to the existing 600 dollars another 2 С… $300 = $600, i.e. when having $1200; from 3 to 4 mini lots with the deposit of $1200 + ($300 С… 3) = $1200 + $900 = $2100, etc. Thus, "the number of contracts is proportional to the amount required to buy a new number of contracts", from where the method derives its name. The decrease in the number of lots follows the same scheme in reverse.
We can, of course, run the parameter optimization but let us better have a look at the manual settings. For a pretest, you can use the Opening prices only mode or OHLC on M1.
The Money Management System default parameter values are as shown in the table below:
PARAMETERS VALUE
Start Deposit 10000
Delta 300
Start Lot 0.10
Step Lot 0.01
V)Tooraj Amrabadi - Fixed Ratio Lot Calculator Script Is No longer Available on A) www.MQL5.com B) C) https://www.mql5.com/en/users/tooraj
VI)Table of Risks Fixed Ratio Spreadsheet
VII)Fixed Ratio vs Linear Money Management
VIII)DDSMM Money Management Works.mp4
IX)Apache OpenOffice 4.1.16 Free Software that let's you view spreadsheet & word documents for free Support Windows 32bit & 64bit, Linox, OS https://www.openoffice.org/download/index.html
X)LibreOffice logo26.2.1 Free Software To View Spreadsheet Supports Windows 64bit, Linox, Mac OS s As Well https://www.libreoffice.org/download/download-libreoffice/
PS I've Enclose DDSMM Excel Spreadsheet I realy don't understand what is the delta amount that the DDSMM Excel Spreadsheet is using to increase the lot size. & Other Spreadsheets that Have Fixed Ratio Money Management Techniques
Last edited:
First and foremost I want to thank the earnforex team for this great ea. I wanted your opinion on the best way to limit my max slippage to 0.2 pips (Anything above and no trade). I use the ea to set predefined buy/sell stops alongside fixed SL and TP. Should I use the Max slippage setting (Putting '2' as setting) or use Max Entry/SL distance with my tp in pips plus 0.2 pips? This is for Eur/usd during the most liquid hours
Last edited:
Sorry, but I don't think that adding any of those money management systems to the Position Sizer would make sense.
First, it's a position sizing tool, not a money management one. Its risk-as-the-percentage-of-account is the only thing that lends it some money management property (anti-martingale).
Second, I would hate to sway traders towards money management techniques I consider dangerous. Unfortunately, some elements of the Position Sizer already do that and I wouldn't want to add more of that.
Third, it makes more sense to create a separate tool when position sizing isn't risk-based. Implementing a money management system is something that is best done directly in the EA that is used for trading, since it usually implies analyzing the sequences of trades.
Max Entry/SL distance only checks the distance between the Entry and the Stop-Loss that you've set. It has nothing to do with the slippage.
If you want to avoid a trade when the slippage is greater than your expected value, then yes, you need to set Max slippage (to 2 in your case). However, this doesn't guarantee that the slippage will be avoided. It will depend on how your broker handles this. The Position Sizer will just send that value inside the trade request and that's it.
It looks like you are looking to restrict your total risk to 1%, but you have some trades without SL running, so the Position Sizer doesn't open your position.
Hi, As Enivid mentioned earlier this tool is completely for placing positions/ orders size with managed risk. The features your request is based on money management. So, It may need to be developed separately.
EnrichWave Duly Noted & Thank You For Your Response , Assessment, & Observation.
Yes, you can set the TP multiplier and lock the TP on SL, so the risk-to-reward ratio will be the same wherever you put your Entry or SL.
Hi thanks for the reply. It doesnt work the way I wanted it to. I want to set an SL and the TP to be automatically set to 1:2 R:R. its not dynamic as I expected. If I set the TP multiplier to 2, and move the SL, the TP point doesnt adjust accordingly
It flashes when the value is different from the Result value. This might happen as the currency rates change or the SL distance jumps.
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