Input Balance to EA for considering the risk/opening lot size

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Sai Pratap
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  • Under review

As of now, EA is considering the overall balance of the account for deciding the risk/opening lot size for trades.

This shall impact the risk when we are operating multiple set files of EA as every set file sees the same balance and opens a bigger lot size.

Say for example, if account balance is 10k$ and if we set 0.01 lot/1000, each set file will start with 0.1 lot and there by increasing the risk. This may be worked out by having reduced starting lot/1000 but this method will not for sets with risk %.

So to have common solution to all sets, it might be helpful to have the account balance as input to EA for each of the set files.

This shall help in reducing the risk.

Hope this makes sense. Please post ur opinion and vote.

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Andrey Khatimlianskyi
  • Under review

Why not to decrease Risk size?

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Sai Pratap

Yeah sir.

But this shall help in better backtesting and understanding the risk/DD.

We can also check the sets live by limiting the capital for it in the same account such as 

https://communitypowerea.userecho.com/en/communities/4/topics/381-dtrend-fibonacci?page=1#comment-2277

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Sai Pratap

Also it is more of money management sir.

Say for example, if we have 10k$, I may like to allocate 5k$ to low risk sets,  3k$ to medium risk sets & 2k$ to high risk sets.

As the accounts grows 12k$, by having as % terms, in conventional method, we are moving the profits made(from even low & medium risk sets) also to be lost by having balance common with high risk sets.

With the new method, even if the set blows off, it will be limited to 2k$. 

And as the account grows, as we are considering the same balance for the set, the risk will come down.

Hope Iam clear.

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Andrey Khatimlianskyi

Limiting the max loss - is another task.

As for the risk, you'll have no difference with and without this option.

You example: account with 10K. You want to run strategy with 0.01 per 1000 lot size and allocate 5k for it. Set 0.005 per 1000 and you'll have the same results.

I have library with "Personal balance" option, but it will only complex the EA in my humble opinion.

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Ulises Cune
Quote from Sai Pratap

Also it is more of money management sir.

Say for example, if we have 10k$, I may like to allocate 5k$ to low risk sets,  3k$ to medium risk sets & 2k$ to high risk sets.

As the accounts grows 12k$, by having as % terms, in conventional method, we are moving the profits made(from even low & medium risk sets) also to be lost by having balance common with high risk sets.

With the new method, even if the set blows off, it will be limited to 2k$. 

And as the account grows, as we are considering the same balance for the set, the risk will come down.

Hope Iam clear.

Hello Sai,

You could solve this by creating 3 accounts in the broker and assigning 5k, 3k and 2k to each account and use a setting file with different risks in each one.

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Sai Pratap
Quote from Ulises Cune

Hello Sai,

You could solve this by creating 3 accounts in the broker and assigning 5k, 3k and 2k to each account and use a setting file with different risks in each one.

Hi Ulises,

That is what I wanted to avoid.

If I create 3 accounts, I need to maintain 3 MT5/MT4 setups on VPS, which will just increase the memory consumption. Thought to take fwd this idea if its simple. But as Andrey sir is saying it will complex the EA, let us drop off.