Hi all,
does anybody use a tool to work out position sizes to risk x% of your account per trade? I’ve used Admiral’s one, and the Baby Pips one, but they always make the risk too small. On the Swissy trade I just won, I should have risked 2% and made 4% on a 2:1 Reward:Risk. I entered all of the data in the Baby Pips calculator, entered my trade accordingly, but it only came out at 2.4% profit. It’s a similar story when I use the one on Admiral Markets.
Thanks for reading!
I’m a complete hack. I have an 0.08 lot size every trade with a 100;1 leverage. Look up the ATR number and place the S/L between 100 & 200 points. Then enter the trade and manually move the S/L to a 1% -1.5% risk target. I let trades run until they’re losing trades and cut it at 0.7% loss.
With winning trades, i aim to move the S/L towards breakeven, and then - if the market conditions favour an extended trend - take another 50% position. Most you can lose is 0.5%. Most you could win will take care of the losses and more.
I’m trading majors and risking 20 pips per trade (30 on GU), Surely a calculator can tell what size the position should be to risk 2% based on a pre-defined stop?
I can’t say I’ve had that issue. Are you able to screen shot the data you put in for that particular trade? I mainly use the BP one and it’s on the money normally (excuse the pun).
Me too i use the BP one as well
This was it. Position was 0.07 lots. TP was 40 pips, so it should have given me roughly £29.20 profit, minus the cost of the trade and the swap. I actually closed it manually at 37 pips, so profit would be a little less. The profit from the trade was only £20.22 though.
Thanks!
Interesting. Here’s the size on the MyFXbook calculator. 0.092 - so 0.09. That sounds more like it i think.
It might be the exchange rate asking for current GBP/CHF price that throws it out if the same data put into MFxB brings you to a different lot size when that is the only piece of data not being asked there. Interesting. I mean less risk is better than too much of course but I can see why you are frustrated.
The GBP/CHF rate was populated automatically. 2% risk per trade is in my trading plan, so it’s important that I can consistently have the same risk whatever the pair.
Good idea. I hope it works for me. Because I work with risk ratio.
You could download Myfxbook app - and then open calculator section and input your above numbers for whichever currency pair you’re using… It looks effective and maybe i’ll get around to using it.
For USD/JPY using your values, the outcome is mini lots of 0.109, with a pip value of $9.162.
for GBP/USD it’s 0.1 and $10 pip value.
I would suggest all major pairs are in the same zone
i use myfxbooks calculator too and have no issues with it
When it comes to risking my money per trade, I never risk more than 1% of my total capital. It helps me keep trading for longer without the fear of losing what my pocket doesn’t allow.
I don’t risk more than 2%. We use a 1: 2 risk ratio for each trade. My profit percentage is much higher if I use this method.
