Money Management

[Finch]

Hello fxDreema,
if i use in Money Management "% of Equity", the lotsize should be 3% of Equity but if i use in strategy-tester StartBalance 50.000 the lotsize is 0.01 Lot.
If i use 100% the lotsize is 0.50 Lot.
The same as Balance and FreeMargin.
What is wrong?

http://fxdreema.com/shared/lpp8ZEcac

greetz
Finch

[fxDreema]

There are another options if you want your lot size to depend on SL size - see "Risk %..." options. Options with only "%" are simply... if the value is 100 (%) from balance, that means when you have 10.000 USD, the lot size will be 10.000 USD, which is 0.1 lot. 3% is too low in this case, that's why the minimum available lot is taken.

[Finch]

Ok you're right, but what about the Leverage?
__if the value is 100 (%) from balance, that means when you have 10.000 USD, the lot size will be 10.000 USD, which is 0.1 lot.[/quote:1ungs3gn]
This means 1:1 Leverage, in Stragegy-Tester the Leverage is 1:100, i use some Brokers with 1:400 Leverage and so on.
Let me show youu what i mean

Lots = AccountEquity() / 100 * % of Equity * AccountLeverage() / 100000;

% of Equity = 3
Equity = 1000
Leverage = 100 | Lots = 0.03

Leverage = 200 | Lots = 0.06

Leverage = 400 | Lots = 0.12

Whatever leverage we have, there are always 3% of equity, of course should be again depending on minimal_lotsize.
Also would be an input of advantage, if the calculated lot size is below a certain limit, the value entered lot size is taken.

if (Lots < value_entered_lotsize) {
   Lots = value_entered_lotsize; 
   return(Lots);
   }

greetz
Finch

[fxDreema]

I mean... now the option "% of Equity" really means that. If you have 1000 dollars, then 100% of Equity is 1000 dollars, 50% of Equity is 500 dollars. Basically these options are there because of the ability to take values equal to or bigger than 100%. The idea is that when your profits grow, lot sizes also grow with it - in linear style, not exponential. But we don't care of leverage here, because leverage is only the ability to trade with X-times more money than we have.

So, when you have 1000 dollars, then 3% of equity is at least 3000 dollars? I think you are talking for another kind of MM, but I don't know it's name. Where did you get this idea?

[Finch]

__But we don't care of leverage here, because leverage is only the ability to trade with X-times more money than we have.[/quote:1shqk2z2]
Why not? I think all Broker work with leverage.

__So, when you have 1000 dollars, then 3% of equity is at least 3000 dollars? [/quote:1shqk2z2]
Yes, if the Leverage 1:100 we work with 3000$ but margin is only 30$
if Leverage 1:400 we work with 12.000$ but margin is still 30$
3% of 1000$= 30$

__I think you are talking for another kind of MM, but I don't know it's name. Where did you get this idea?[/quote:1shqk2z2]

I don't know any name of this kind of MM, maybe linearMM ^^, i wrote the code in some of my own EA's, before i used fxDreema

[fxDreema]

So, where did you get the idea of that kind of MM?
I will surely not rewrite "% of..." options only because you care of leverage for some reason, but if that MM is well known and many other people can use it, then I can add it in another option. But if this is something only in your mind, you can do calculations by yourself. I can suggest:

• "Formula" blocks
• define lot size as dynamic value (the last option in Money Management parameter), so you can add some calculations directly in "Adjust" field
• Use a variable to hold the value of lot size and use "Custom MQL4 code" block to modify that variable
• Create a custom block (Library Studio)

[Finch]

__So, where did you get the idea of that kind of MM?[/quote:2ml2g9px]
I thought it's a Trading Rule, never risk more than 1-3% of Equity?!
__But if this is something only in your mind, you can do calculations by yourself.[/quote:2ml2g9px]
You're right, i can calculate this MM by myself.

I just didn't know how it's work with the "% of Equity", therefore my question.

Maybe if more people are interested in, as you already said, you can take it as a new option.

Thank you for your suggestion, I will try it with it.

[fxDreema]

I think the rule "never risk more than 3%" is the one that calculates lot size depending on stop-loos. In this case if you want to set X pips SL, then the lot size is calculated in a way that when SL is hit you will lose about 3% of equity (or balance). And there are options for this situation, but they are named like "Risk % of Equity".