hello

I want some one to explain to mu using an example how to calculate the stop loss limit fo a deal

thanks for all

hi,

well, this depends on how much money you want to risk in one trade. traders here in this contest (me too) risk much too much to compete.

in a real money account you would risk 2% perhaps 3% of your accounts balance. if you decide in the contest to risk 5% with one trade, the calculation goes like this:

100K balance. 5% = 2K . so, now your SL size depends on the size of your position. or your postion size depends on how far away the SL is.

you know that you dont want to risk more than 2.000 dollars in one trade.

when you trade 1 million, 1 pip is worth 100 dollars. so your stop loss should than be at maximum 20 PIPS. if you need your stop loss to be farer away, for example 100 pips, you have to reduce the position size. in this case you would reduce it to 0.25 million. then you could use a stop loss of 100 pips and still lose ONLY 2.000 dollar.

understood?

1. define how much you can afford to lose
2. define where the SL target should be
3. calculate the size of the position

the more pips Sl you want to use the smaller the position size.

kind regards

skytrader

Read out all pages at https://www.dukascopy.com/wiki/index.php?title=Special%3ASearch&search=stop

Hope that helps buddy.

thanks alot