Gits (Hooglede) Belgium
Legendary Market Wizard
Experience: Master
Platform: NinjaTrader, Proprietary,
Broker: Ninjabrokerage/IQfeed + Synthetic datafeed
Trading: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
Posts: 3,003 since Sep 2013
Thanks Given: 2,442
Thanks Received: 5,863
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What about this :
amount = capital * max risk percentage / (pipvalue * number of pips SL)
your example :
suppose you have 1000 € and want to risk 2%
maximum loss = 20 €
equivalent lot = 1000 € * 0,02 / (0,0001 X 20)
0,02 : 2 %
0,0001 : pip value
20 : number of pips
result being 10000 €
you can maximum buy/sell 10000 € with a 20 pip stop
check : 20 pips of 10.000 € = 10.000 * 0,0020 = 20 €
be careful, you can have slippage on your stop.
I normally trade futures, and there we talk ticks and contracts.
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