Hi there
Can someone please advise what my lot size is?. understand that lots are 10k 100k etc, but I want accurately fill out my spread sheet.I cant understand how that is in relation to my equity etc…
There is lot size, and 5 lot frac (whatever that is)
Thankyou
I don’t think I understand the question. Lot size is not influenced by your equity. It simply represents the amount of units you are trading. Most platforms deal in fractions of standard lots of 100k units.
1.234 is equal to 123400 units, for example.
Your spreadsheet is screwed up.
Let’s run through Trade #1 on spreadsheet line 4 (why is a trade called a “level”, by the way?)
Equity (column B) $5,000 – this is beginning equity, before Trade #1 is entered.
Risk (column C) 5%
Pip value (column D) – this obviously means that the trade involves a pair having a pip-value of $10 per standard lot (100,000 units)
Spread (column E) – the spread does not enter into any of the calculations
Stop Loss (column F) 35 pips
Risk (column G) $250
– so far, so good –
Lot size (column H) – this is where the spreadsheet gets screwed up. If you use a Position Size Calculator, and plug in the relevant numbers, you will find that your positions size should be 0.7143 standard lots, not 0.66 standard lots as your spreadsheet says.
5 lot fraction (column I) – obviously this means that, if you divide your position into 5 equal parts, then each fractional part will be such-and-such. What purpose this serves, I have no idea. But, more importantly, the fractional position is based on the incorrect Lot size in column H.
0.66 divided by 5 is 0.13 (rounded off), but 0.66 is the wrong position (lot) size.
Profit/pip (column J) – here is the next error. If the pip-value per standard lot is $10 (column D), and if the correct position (lot) size were 0.66 standard lot (column H), then the pip-value for this particular position would indeed be $6.60 per pip. But, the 0.66 std. lot position size is wrong. Using the correct position size of 0.7143 std. lot, the correct Profit/pip (column J) is $7.14
Profit in pips (column L) – 30 pips
Profit in dollars (column M) – here is the final mistake on this line of the spreadsheet. If the correct Profit/pip (column J) is $7.14, then the Profit in dollars (column M) would be $214 (rounded off), not $198 as the spreadsheet shows.
– and all of that is just Trade #1 (spreadsheet line 4) –
The error in line 4, column M, is carried to line 5, so that Trade #2 starts off with the wrong Equity. Then, the calculation mistakes made on line 4 get repeated on line 5, and the errors multiply line after line from there.
