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Calculate lot amount based on use of laverage percent
 Post subject: Calculate lot amount based on use of laverage percent Post rating: 0   New post Posted: Fri 25 Apr, 2014, 11:08 
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Hello!

Is it any way to get trade amount (Lot Amount) value based on use of leverage percent (1% use of leverage f.e.) when buy/sell condition met?

regards


 
 Post subject: Re: Calculate lot amount based on use of laverage percent Post rating: 0   New post Posted: Fri 25 Apr, 2014, 14:34 
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Greetings!

Quote:
Is it any way to get trade amount (Lot Amount) value based on use of leverage percent (1% use of leverage f.e.) when buy/sell condition met?


Sure it is possible!
For instance, if you have 100k as deposit and you want to trade with a use of leverage (assuming that the base currency is equal to the first currency of the pair; base currency: USD - trade currency: USD/JPY) of 1% then you can define that the strategy has to trade with 100.000 trade amount (assuming the leverage for the account is 100:1).

TradeAmount= Equity * Leverage(account) * Use of leverage


 
 Post subject: Re: Calculate lot amount based on use of laverage percent Post rating: 0   New post Posted: Fri 25 Apr, 2014, 17:31 
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dirk_r1 wrote:
Greetings!

Quote:
Is it any way to get trade amount (Lot Amount) value based on use of leverage percent (1% use of leverage f.e.) when buy/sell condition met?


Sure it is possible!
For instance, if you have 100k as deposit and you want to trade with a use of leverage (assuming that the base currency is equal to the first currency of the pair; base currency: USD - trade currency: USD/JPY) of 1% then you can define that the strategy has to trade with 100.000 trade amount (assuming the leverage for the account is 100:1).

TradeAmount= Equity * Leverage(account) * Use of leverage

Hello!
Maybe I'm dumb or it is end of the weekend but I'm in "endless loop" with this :mrgreen:
So further assistance will be much appreciated, because I'm stuck with that.

Idea is when strategy start to trade, trade amount must be 1% use of leverage. Please see picture bellow.
Regards
Image


Attachments:
TradeAmount.png [25.49 KiB]
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 Post subject: Re: Calculate lot amount based on use of laverage percent Post rating: 0   New post Posted: Mon 28 Apr, 2014, 08:09 
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Greetings!

Please have a look at the component attached:
The calculation is on the right side for no open position while on the left side there is the calculation for open positions >= 1.


Attachments:
UseOfLeverage.vfs [26.68 KiB]
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 Post subject: Re: Calculate lot amount based on use of laverage percent Post rating: 0   New post Posted: Wed 07 May, 2014, 18:16 
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Hello.
Sorry for late reply.

Thank you for your post.
I use a little bit a different approach, so need to know if I am on right way.
Using rule "Trade no more than 2% of amount", I simplify formula to defaultTradeAmount= Equity x Trade risk(%) x Pip value / Lot Size.
So if I have $1000 on my account and want to trade 1% of account it should be:

1000 x 0.01 x 10 / 100000 = 0.001 TradeAmount
About Pip value, I know most pairs have pip value around $10 (but not all) so it is "quick&dirty" solution. :lol:

Please see attached file.
Any improvements are more than welcome!!

Regards


Attachments:
MM.vfs [20.6 KiB]
Downloaded 116 times
DISCLAIMER: Dukascopy Bank SA's waiver of responsability - Documents, data or information available on this webpage may be posted by third parties without Dukascopy Bank SA being obliged to make any control on their content. Anyone accessing this webpage and downloading or otherwise making use of any document, data or information found on this webpage shall do it on his/her own risks without any recourse against Dukascopy Bank SA in relation thereto or for any consequences arising to him/her or any third party from the use and/or reliance on any document, data or information found on this webpage.
 

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