1st Lot from % of Balance

Avatar
andy
  • updated
  • Declined

For a more "fair" (at any time of the test start) DD, I suggest calculating the 1st Lot as a % of the Balance

Look

Lot/1000 = 0.1

---------

Balance 1000

1.01 open 0.1

10.01 profit +900 Balance= 1900

15.01 open 0.1

20.01 DD 80% (-1520)

25.01 profit +200 Balance= 2100

---------

Balance 1000

15.01 open 0.1

20.01 DD (-1520) Stop Out


Here we do not see in the first test run that we "suffer a fiasco" at the start from 15/01

==================================

And here we see...


Lot = 1%/Balance

--

Balance 1000

1.01 open 0.1

10.01 profit +900 Balance= 1900

15.01 open 0.19

20.01 DD (-1520*0.19/0.1=-2888) Stop Out

====

Lot = 0.5%/Balance

--

Balance 1000

1.01 open 0.05

10.01 profit +450 Balance= 1450

15.01 open 0.07

20.01 DD (-1520*0.07/0.1=-1064)

25.01 profit +140 Balance= 1590

---------

Balance 1000

15.01 open 0.05

20.01 DD (-1520*0.05/0.1=-760)

25.01 profit +100 Balance= 1100

Stop Out is not happening

Replies 6
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0
Andrey Khatimlianskyi
Quote from andy

***********

YOU SAYS: Lot per 1000 works bad for very small deposits. But it is not a problem for live trading, I guess.

***********

Yes, I agree with you here

that with a larger balance, the error / deviation will decrease...

when using the Lot/1000 setting

                           1000             2000            3000            4000            10,000         100К

                           1999             2999            3999            4999            10,999         100,999

                           x 2                 x 1.5      x 1.3            x 1.25           x 1.1            x 1,01

Deviation          max 100%    max 50%     max 33%     max 25%     max 10%     max 1%

Yep, this is exactly what I meant )

And if you want to start with $500, just use the Fixed lot size first time.

Avatar
1
andy

***********

YOU SAYS: Lot per 1000 works bad for very small deposits. But it is not a problem for live trading, I guess.

***********

Yes, I agree with you here

that with a larger balance, the error / deviation will decrease...

when using the Lot/1000 setting

                           1000             2000            3000            4000            10,000         100К

                           1999             2999            3999            4999            10,999         100,999

                           x 2                 x 1.5      x 1.3            x 1.25           x 1.1            x 1,01

Deviation          max 100%    max 50%     max 33%     max 25%     max 10%     max 1%

Avatar
0
andy

Let's think again...

Without using HEDGE %Margin ~ %Balance (without taking into account changes in exchange rates)

When using HEDGE, it's a completely different story (different numbers)

in %Margin mode:

1st HEDGE lot (usually) will be opened with a smaller lot than in %Balance mode

You can use : Increase hedge lot after order #1 x1 to First opposite lot to open in volume as 1st opposite lot

But then don't use: Increase hedge lot after order #N>1

If used, we have up to N- opposite lot: 1st HEDGE lot - with a smaller lot than in %Balance mode

Thoughts out loud... I don't know which method would be better... You won't understand without a test :)

Avatar
0
Andrey Khatimlianskyi
Quote from andy

Andrey, write the formula for calculating the Lot from Margin, which is used in the Expert Advisor.

What is the coefficient for a lot of 0.05 with a balance of 1000 and LA 1:500. (1,1-1,2)?

And the dollar exchange rate is still changing.... This is not equivalent at all from Balance.

But it's well and better than Lot/1000.

** And how Hedge orders will be opened. From the free margin?

It is necessary to revise the settings of Hedge orders.

In principle, it is better to focus on strategies/indicators for now.

Margin percent use = 100% means EA will use 100% of free margin for the new order. It depends on account leverage, of course.

5% means it will use only 5%. And so on.

Avatar
0
andy

Andrey, write the formula for calculating the Lot from Margin, which is used in the Expert Advisor.

What is the coefficient for a lot of 0.05 with a balance of 1000 and LA 1:500. (1,1-1,2)?

And the dollar exchange rate is still changing.... This is not equivalent at all from Balance.

But it's well and better than Lot/1000.

** And how Hedge orders will be opened. From the free margin?

It is necessary to revise the settings of Hedge orders.

In principle, it is better to focus on strategies/indicators for now.

Avatar
0
Andrey Khatimlianskyi
  • Declined

% from balance is equal to 'lot per 1000'

The only difference is in change step. Lot per 1000 works bad for very small deposits. But it is not a problem for live trading, I guess.

And, finally, you can use "Margin percent use". It will work like % from balance for the first deal.