|
Frankfurt am Main
Posts: 4 since Mar 2016
Thanks Given: 1
Thanks Received: 1
|
Hi I think I'm working on the same problem.
My objective is to have a similar if not equal amount of money at risk with every single trade (say 200$). Stop Loss and Take Profit are known before entering a trade.
I'm trading indices such as GER30, US30, JPN225, NAS100, HKG33, EUSTX50 and SPX500 which come in different currencies. The problem is that an equal range trading the HKG33_CFDHKD or the JPN225_CFDJPY yields less US$ per pip than when trading the GER30_CFDEUR.
As far as i'm aware of, the differences are a) the ranges itself (i.e. Entry - TP/SL) b) yield per pip and c) the exchange rate from the index currency (e.g. JPY) to the account currency (USD).
In order to have an equal constant amount at risk with each trade I'd like to dynamically adjust the quantity of CFDs traded.
My approach was to divide the amount at risk by the range traded.
E.G.:
Range = 10050 - 10000 = 50pip
Risk amount = 200 $
Yield per pip (FXCM) = 0.1
So I'd calculate the no of CFDs:
CFDs = (Risk / Range) / Yield per pip = (200/50) / 0.1 = 40
I'm now thinking that the missing parameter may be the exchange rate to be considered when trading indices. is there a means of using the applied "rate" in NT7 (as displayed in the executions tab)?
Or are there any other approaches to keeping the money at risk constant with each trade despite varying ranges traded?
|
