Trading without proper risk management is suicide for a deposit. No matter how well a trader knows how to trade, the deposit will still be drained if you do not think over which lots to enter in a particular deal.
It is believed that the adequate risk per transaction should be equal to 2 – 5% of the available funds on the account. It is tiresome to calculate which lot to enter each time. For this, programmers develop various indicators that help save time.
This time we will deal with a very simple indicator called the “Lot Calculation Indicator” for MetaTrader 4.
As you already understood, this article will introduce you to an indicator that will help you calculate the optimal lottery for entering a trade. I trade in the Meta Trader 4 platform, so the indicator is tailored specifically for this platform.
“Lot Calculation for MT4” indicator settings
The indicator is extremely simple and has only a few important parameters:
- The amount of risk in percent. In the value field, you should set the interest of interest from the deposit, which you are willing to risk in a separate deal.
- A space separates SL dimensions. In the value field, list the most popular stop loss sizes, set by you when trading, separated by a space. Here you should know, for five digits, use three digits (for example, a value of 200 will mean a stop loss of 200 pp), for four digits, respectively two digits (for example, a value of 20 will mean a stop loss of 20 pp ).
The parameters listed above are basic. Next are the visual settings for displaying data:
- Angle: 1-Right up, 2-Right down, 3-Right down, 4-Left up. The value of the digit determines the angle at which the data window will be displayed.
- Offset from the horizontal edge. Set the value that will mean the indentation.
- Indent from the vertical edge. Set the value that will mean the indentation.
- SL text color. Set the text color of the stop loss output.
- Text color Spread. Set the color of the spread value output text.
- Text color Risk. Set the color of the text for displaying the risk value per trade.
- Show the amount of risk as a percentage. In the information window, the specified risk in percentage will be displayed. False disables the feature. True enables it.
- Show the amount of risk in currency. In the information window, the specified risk in the currency will be displayed. False disables the feature. True enables it.
- Show the size of the current spread. In the information window, the current spread in the used currency pair will be displayed. False disables the feature. True enables it.
After all the “Calculate lot for MT4” indicators have been set, click OK and see how it looks on the chart.
Indicator “Lot Calculation for MT4” on the chart
The information panel of the indicator displays the specified number of parameters. Depending on the installed location, the information will be displayed in one corner (in my case, at the bottom right). Let’s consider what information and why to display the indicator:
- The risk per trade is marked in red, which equals 53USD. The indicator takes the existing deposit equal to $ 5281.39 and calculates the risk percentage specified in the settings. In our case, the value is set to 1%, so the indicator calculated the risk equal to $ 53.
- The stop loss sizes of interest are marked in blue.
- In green, the current spread in the pair.
How to use the MT4 Lot Calculation indicator
As you already understood, the indicator only displays information without trading on its own. This means that if you need to open a deal with a stop of 200 points, you should look at the information panel, find the line with SL = 200 and see which lot you want to place.
The indicator is very easy and straightforward to use. I hope it will be useful to you in trading and help you not lose your deposit. You can download the indicator at the link below.
Download, install, and work, and write your comments, and I will try to find something interesting until new articles.