Lot calculator - risk management tool
This tool for MetaTrader 5 is specifically engineered to streamline your trading operations. This technical indicator acts as a specialized analysis tool designed to visualize market data. It helps traders identify emerging trends, momentum shifts, and key support or resistance levels by plotting statistical calculations directly onto price charts.
How to Setup and Use Lot calculator - risk management tool
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
Description & Settings
Most of professional traders state that their success is based on strict risk management.
This simple tool is designed to show the correct lot size to trade with respect to the following basic risk management rules:
Risk only a fixed percentage of the total money on the account (e.g. 1-2%).
Risk is measured by distance in pips between order opening to and emergency stop loss.
So, for example you have €2000 in your account, and you want to put an order on EURUSD with an emergency stop loss 191 pips from the order open value, what can be the correct lot size to trade?
The formula is:
F * R / (p * pv)
, where:
T - total account free margin.
R - risk.
p - pips between open order and stop loss.
pv - pip value (in the same currency as the account main currency).
The result, as you can see in following figure, is 0.02 lots.
With €2000 available, risk is 165 pips, to risk the 2% you have to trade USDJPY no more than 0.03 lots.
The indicator shows quantities already switched to the current account currency.
In order to change the indicator parameters, simply access indicator properties:
Parameters
Stop loss distance from open order: pips number to risk.
Free margin fraction to risk: a good value range is 0.01-0.02.
Check to read the actual free margin of your balance, uncheck to specify a simulated balance: flag used to consider the true free margin or the simulated balance.
Simulated balance: free margin value to simulate.
