Weekend Gap Risk Assessment for Prop Firm Trading
Info
The Weekend Gap Risk Assessment for Prop Firm Trading is a Script for MetaTrader 5 that estimates potential loss for open positions due to market gaps upon reopening, comparing it against the daily loss limit for the next trading day. This tool is recommended for use before the Friday market close or before a holiday period.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Script works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Scripts folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use Weekend Gap Risk Assessment for Prop Firm Trading
1. Installation: Move your script file into the MQL/Scripts directory and restart the platform.
2. Execution: Drag the script onto a chart; it will perform a one-time action, such as closing all open orders or clearing chart objects.
3. Editing: Use MetaEditor (F4) to modify code, click "Compile," and verify no errors appear in the terminal before running.
4. Removing: Scripts stop automatically, but you can remove them manually by right-clicking the chart and choosing "Remove Script."
Frequently Asked Questions
Q: How are scripts different from EAs? A: Scripts execute a single action and then stop; EAs monitor the market and trade continuously.
Q: Can I assign a hotkey to a script? A: Yes, right-click the script in the Navigator, select "Set Hotkey," and define your preferred keyboard shortcut.
Q: Why did my script stop? A: Scripts are designed to stop immediately after finishing their programmed command; this is normal behavior.
What this tool does
Estimates potential loss for open positions due to market gaps upon reopening, comparing it against the daily loss limit for the next trading day.
Typical Use Case
This Script excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Script works on MetaTrader 5. Place the file in the MQL5/Scripts folder and restart the terminal.
Description & Settings
Related: Risk of Ruin Calculator: Understand Your Trading Account's Vulnerability - another powerful script for MetaTrader 5 traders.
Estimates potential loss for open positions due to market gaps upon reopening, comparing it against the daily loss limit for the next trading day.Also recommended: Risk-Based Lot Size Calculator Script with On-Chart Panel - similar script with strong performance on MetaTrader 5.
This tool is recommended for use before the Friday market close or before a holiday period.
Key Information Displayed
- The daily loss limit for the upcoming trading day, in monetary value.
- The current floating loss. If your proprietary trading firm defines the trading day based on account balance, this floating loss will impact the next day's limit even before any gap occurs.
- For each open position: the symbol, side (buy/sell), trade volume (lots), the accepted gap percentage for its instrument group, and the estimated loss that gap would incur.
- A verdict indicating 'OK' or 'TOO MUCH', along with the necessary reduction amount for each position if the risk exceeds the limit.
Importance of Gap Assessment
A stop-loss order does not provide protection against market gaps. Orders are executed at the first available price after the gap, which can result in losses significantly exceeding the initial stop-loss level.
Configurable Inputs
- Account size (set to 0 to use current balance) and daily loss limit percentage, plus a safety margin percentage.
- Option to include floating losses carried over from the previous day against the next day's limit. Verify your firm's definition of a trading day start.
- Define the acceptable gap percentage for different instrument types: currency pairs, metals, indices, and cryptocurrencies. For cryptocurrencies, this setting reflects potential price movement during periods when the market is closed to you.
- Specify symbol groups using partial matches within the symbol name (e.g., XAU, US500, BTC).
Loss Calculation Method
The loss for a given position is calculated as: price x gap % / tick size x tick value x lots. The tick value, provided by your broker, ensures the final result is in your account's currency.
Note: This script exclusively reads account information and does not initiate, modify, or close any trades. The defined gap percentages represent your risk assessment assumptions and are not market forecasts.
You may also like: Contract Sizer: A Risk Management Tool with Ladder, Floor, and Breaker Protections - excellent alternative for script users on MetaTrader 5.
Source Code
#property copyright "RobotFX"
#property version "1.00"
#property description "This code is educational. Feel free to use, modify and upgrade as you wish. Visit ROBOTFX.ORG for professional trading tools"
#property script_show_inputs
input group "Account rules (check them with your prop firm)"
input double InpAccountSize = 0.0;
input double InpDailyLossPct = 5.0;
input bool InpFloatCounts = true;
input double InpSafetyPct = 80.0;
input group "Gap you accept, as % of the price".......
⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.