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Explaining How Risk % is Calculated

mjkidd27

Member
@David can you explain the details of how Risk % is calculated and if the bot will limit entering new trades as Margin Level % begins to get stressed at <200%?
 
Hi there,

So essentially if you decide to use Risk% instead of a Lotsize, it will deduct x% with every new trade.
For example if your Risk% is set to 1, it means that each new trade that opens will open with 1% out of your total balance.
Limiting wise, of course if your Risk% is set too high, your balance is too low it might trigger the Margin levels.
 
Hi there,

So essentially if you decide to use Risk% instead of a Lotsize, it will deduct x% with every new trade.
For example if your Risk% is set to 1, it means that each new trade that opens will open with 1% out of your total balance.
Limiting wise, of course if your Risk% is set too high, your balance is too low it might trigger the Margin levels.
@Chris Thank you for the reply. A few follow up Q's...1) Is it calculating based on balance or equity? It appears to use equity. 2) Does the bot take into account the current Margin Level %? In other words, if the margin level is low and therefore the account is stressed out (ex. say around 100% or less, will the bot stop opening new trades which would only further deplete margin level? 3) If the answer to #2 is no, what would be the recommended way to stop the bot from opening new trades?
 
@Chris are you able to explain why the bot when set to 1% risk% would be trading a .56 lot size on an account that holds a balance of $26,000 and equity of $18,000? It doesn't seem to me to be calculating the lot size correctly based on 1% of risk.
 
@Chris are you able to explain why the bot when set to 1% risk% would be trading a .56 lot size on an account that holds a balance of $26,000 and equity of $18,000? It doesn't seem to me to be calculating the lot size correctly based on 1% of risk.
Hi there,

So just to clarify. When using Risk% your Lotsize has to be on 0, otherwise the Risk% won't kick in.
As for your previous entry. Yes it's based on equity, it does take into calculation the Margin as well.
A good way to limit the trades is the Max Orders function. You can basically instruct the bot to open X amount of trades per pair
 
Hi there,

So just to clarify. When using Risk% your Lotsize has to be on 0, otherwise the Risk% won't kick in.
As for your previous entry. Yes it's based on equity, it does take into calculation the Margin as well.
A good way to limit the trades is the Max Orders function. You can basically instruct the bot to open X amount of trades per pair
Yes, I understand the Lot Size needs to be set to zero, and it has been. I'm not looking to limit trades, just trying to understand the calculation it uses to determine lot size when Risk% is used. Like I said, I have a 1% set but my equity was around $18,000...so why it was taking on a lot size of .56 and .62 is a mystery to me. Can you share the calculation?
 
Yes, I understand the Lot Size needs to be set to zero, and it has been. I'm not looking to limit trades, just trying to understand the calculation it uses to determine lot size when Risk% is used. Like I said, I have a 1% set but my equity was around $18,000...so why it was taking on a lot size of .56 and .62 is a mystery to me. Can you share the calculation?
So if your Risk% is set to 1. That means that each trade will open with 1% out of your total BALANCE.
Now the prices on said trade might differ due to the leverage you have on your account for example.
 
So if your Risk% is set to 1. That means that each trade will open with 1% out of your total BALANCE.
Now the prices on said trade might differ due to the leverage you have on your account for example.
Ok, that was my understanding too. And for the most part, the bot has been opening trades with what would appear to be a 1% position. However, lately it has seen a significant jump in position size which does not correlate to a 1% position size based on balance. My balance is currently at $26,026 and the most recent positions have been upwards of .59 and .60. Could this be a bug?
 
Ok, that was my understanding too. And for the most part, the bot has been opening trades with what would appear to be a 1% position. However, lately it has seen a significant jump in position size which does not correlate to a 1% position size based on balance. My balance is currently at $26,026 and the most recent positions have been upwards of .59 and .60. Could this be a bug?
Could be, could you send me an email over at support@galileofx.com whenever you got the time?
 
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