Calculate Risk for Grids
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Hi guys! How do you calculate your Risk or Lots for grid systems?
Example my logic is this.
I will only open a trade if the price moves below to the lowest price of previous 10 candles. With a risk of 1% only.Now, for all the grids, I want to use that same distance for my risk.
How do you do this?
Or do you have other better approach to calculate risk for your grid systems? Thanks -
Not sure I fully get it. Do you mean each new open trade will be using an additional 1% risk? How many open trades are you planning to have at any moment?
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@l-andorrà what I mean is the distance positions is equivalent to 1% risk if losing. So technically you will only add a position if the PNL is equal to 1% risk.
instead of SL you will add a position.
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on charts distance between a and b (high/low/time) is measured in points/pips, so 1 stop loss is 1 take profit, so when pips away from open price = 0.00 add a position.
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@ellemitless This is one way to do it:
This example is for buys only. You'll have to replicate it for sells. You can also try jstap's solution, of course.
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@jstap can you please show an example how to do it?
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@l-andorrà bro I don't think that it will calculate the proper lot size for my gridstep with this method.
What I want to do is for example for 100pips loss, I will only lose about 1% of my equity, but instead of stop loss, I will add another position. So ai need to calculate the lot size that Will allow me to only lose certain amount if the gridstep/distance is hit
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This is an example for buys, I added a pips away value for new trade, as using stop would mean the original trade would close at the same time. You can set these numbers to what works for you.
