The position size calculator is a Meta trader indicator that is used to calculate the positions of different things in the forex market. It is a forex calculator that calculates the risks in the trade by giving the value of account currency, account balance, risk percentage, stop loss, pips, currency pair, and then calculate all these things to give the value of the amount that is on risk, position size in units, standard lots, Mini Lots, and micro-lots. This indicator is used for risk management.
Risk can be controlled by proper positioning of the lot sizes in the forex market. This ashi indicator uses one other indicator as a collaborative tool that helps it to make more accurate results and give precise measurements of the risks in the trade. It uses the ATR indicator as a collaborative tool in the forex market.
Forex Lot Size Calculator For Meta Trader 4
There are two different types of strategies that have been used in this indicator and those strategies are given below: –
When contributing, you have two or three options when position measuring: Equal dollar weighting, versus equivalent danger. To think about the two, we should take a gander at how each is finished. For straightforwardness, I’ll talk about stocks, yet similar ideas can be applied to fates, alternatives, and monetary forms.
- Equivalent Dollar Weighting: Splitting your currency into two halves has consistently been a simple method to designate currency across exchanges. For instance, on the off chance that you have $100,000 to contribute, and need to disseminate it in five equivalent parts, you’d essentially buy $20,000 worth of each stock. So in case you’re taking a situation in a $100 stock, you’d buy 200 offers; for a $50 stock, you’d buy 400 offers, and so on.
- Balancing Risk across All Your Trades: Instead of purchasing a similar dollar sum in each stock, you utilize your stop-loss level for each position to decide the danger per share that you’re taking for a given exchange (you are utilizing stop loss, aren’t you?) Once you realize your danger sum for each exchange, you can figure the number of offers to buy, in light of the amount of your absolute portfolio you would hazard for each exchange.
- Adjusting Risk across All Your Trades: Instead of purchasing a similar dollar sum in each stock, you utilize your stop-loss level for each position to decide the danger per share that you’re taking for a given exchange (you are utilizing stop loss, aren’t you?) Once you realize your danger sum for each exchange, you can ascertain the number of offers to buy, given the amount of your complete portfolio you would hazard for each exchange.
Position size Calculator stocks Indicator
To do this correlation, we’ll take a gander at two portfolios that contain similar two stocks.
To make this much simpler, we’ll state the two stocks are $50 each. In any case, Stock A will be a moderate mover with low instability, so we set our stop-loss/following stop only $1 underneath the section cost. Be that as it may, Stock B has a high instability, so we set the stop-loss $4 underneath the passage cost.
- Equal Dollar Portfolio: This one is simple. We just purchase 50,000 dollars of each stock or 1,000 offers. ($50,000 partitioned by $50 per share = 1,000 offers). ~ For Stock A (the moderate mover with the $1 stop-loss), we purchase 1,000 offers ($1,000 hazard per exchange separated by $1 hazard per share = 1,000 offers).
- Equal Risk Portfolio: We decide the number of offers to purchase, because of gambling 1% – or $1,000 per exchange. ~ For Stock B (the unpredictable stock with the $4 stop loss), we purchase 250 offers ($1,000 hazard per exchange separated by $4 hazard per share = 250 offers).
So it’s anything but difficult to see that for stocks with generally shifting stops, an equivalent dollar portfolio can take on a lot of danger – particularly if stocks are lower estimated and unpredictable.
Stop Loss Position Calculator
Another situation is the point at which the more unstable stock hits its following stop and the less unpredictable stock successes a sum equivalent to its stop sum.
One last note: If your system utilizes a set rate for stop-loss or following stop (25% of a stock’s cost, for instance), at that point the “equivalent dollar sum” and “equivalent danger” portfolio position size turns out to be numerically the equivalent! So people that are utilizing a 25% following stop are utilizing an equivalent danger technique if they put equivalent dollar sums into each exchange.
In this situation, you have one victor and one washout, yet in the equivalent dollar portfolio, you end up losing large, while earning back the original investment in the equivalent danger portfolio.
In any case, the expanded benefit is to an equivalent extent to the expanded danger (see the danger % field in our position size calculator).
Auto Buy Sell Position Size Calculator For MT4
And as a rule, when taking on one unit of additional danger, you would prefer not to just get the chance of one unit of additional return.
Yet, since we clearly can’t ensure which exchanges will work and which ones won’t, a technique that balances hazard bodes well. Without drawing another table, you can undoubtedly observe that if the two stocks move in support of yourself, you do get more cash-flow with the additional cash put resources into the equivalent dollar portfolio.
The position size calculator indicator is a Meta trader indicator that has many uses. This indicator is one of the best and accurate indicators.
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It gives all the details for the risk in the trade. It helps the traders to remove the loss from their trade and helps them to earn healthy profits and gains in the trade. It is a risk management indicator.
It gives accurate values by utilizing the ATR indicator as a collaborative tool and the Atr indicator helps the position size calculator to identify the buy and sell signals. It also helps to identify the trend changes, trend direction, and other forex market-related terms.