selecting lot size

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I have just subscribed a signal with max drawdown of 44%. The signal provider trades 0.1 lot. I want to trade 1 lot. Please can any one advise how much deposit I need or any one can share a MQL5 blog/article explaining how to calculate the lot size will be helpful. Thanks
 

Forum on trading, automated trading systems and testing trading strategies

How to Start with Metatrader 5

Sergey Golubev, 2017.02.02 07:45

How to Select a Deal Volume?
The question of how exactly the Subscriber's deposit will participate in trading via Signals service is one of the most critical ones. When solving this issue, we followed the already mentioned principle - providing maximum protection for each participant. As a result, we can offer a secure solution for Subscribers.

The question of how exactly the Subscriber's deposit will participate in trading via Signals service is one of the most critical ones. When solving this issue, we followed the already mentioned principle - providing maximum protection for each participant. As a result, we can offer a secure solution for Subscribers.

When enabling signals in the terminal and subscribing to one of them, Subscribers should select what part of the deposit is to be used when following the signals. There was an alternative solution of setting the ratio between Subscriber's and Provider's position volumes. But such a system could not guarantee the security of the Subscriber's deposit. For example, suppose that Provider's deposit is 30 000$, while Subscriber's one is 10 000$ and the ratio of 1:1 has been selected. In that case, the Signals Provider may just wait out temporary drawdown having a large volume order, while the Subscriber may lose all the funds with all his or her positions closed by Stop Out. The situation may get even worse if the Provider's balance suddenly changes (top up or withdraw), while previously specified volumes ratio remains intact.

To avoid such cases, we have decided to implement the system of percentage-based allocation of the part of a deposit, which is to be used in trading via the Signals service. This system is quite complicated as it considers deposit currencies, their conversion and leverages.

Let's consider a specific example of using the volumes management system:

  1. Provider: balance 15 000 USD, leverage 1:100
  2. Subscriber1: balance 40 000 EUR, leverage 1:200, deposit load percentage 50%
  3. Subscriber2: balance 5 000 EUR, leverage 1:50, deposit load percentage 35%
  4. EURUSD exchange rate = 1.2700

Calculation of Provider's and Subscriber's position volumes ratio:

  1. Balances ratio considering specified part of the deposit in percentage terms:
    Subscriber1: (40 000 * 0,5) / 15 000 = 1,3333 (133.33%)
    Subscriber2: (5 000 * 0,35) / 15 000 = 0,1166 (11.66%)
  2. After considering the leverages:
    Subscriber1: the leverage of Subscriber1 (1:200) is greater than Provider's one (1:100), thus correction on leverages is not performed
    Subscriber2: 0,1166 * (50 / 100) = 0,0583 (5.83%)
  3. After considering currency rates of the deposits at the moment of calculation:
    Subscriber1: 1,3333 * 1,2700 = 1,6933 (169.33%)
    Subscriber2: 0,0583 * 1,2700 = 0,0741 (7.41%)
  4. Total percentage value after the rounding (performed using a multistep algorithm):
    Subscriber1: 160% or 1.6 ratio
    Subscriber2: 7% or 0.07 ratio

Thus under the given conditions, Provider's deal with volume of 1 lot will be copied:

- to Subscriber1 account in amount of 160% -  volume of 1.6 lots

- to Subscriber2 account in amount of 7% -  volume of 0.07 lots

Be careful not to confuse the percentage value of the used part of the deposit and the actual ratio of position volumes. The trading terminal allows setting the part of the deposit in percentage value. This value is used to calculate the ratio of position volumes. This data is always fixed in the log and is shown in the following way:

Subscriber1:

2012.11.12 13:33:23    Signal    '1277190': percentage for volume conversion selected according to the ratio of balances and leverages, new value 160%

2012.11.12 13:27:55    Signal    '1277190': signal provider has balance 15 000.00 USD, leverage 1:100; subscriber has balance 40 000.00 EUR, leverage 1:200

2012.11.12 13:27:54    Signal    '1277190': money management: use 50% of deposit, equity limit: 0.00 EUR, deviation/slippage: 1.0 spreads‌‌

Subscriber2:

2012.11.12 13:33:23    Signal    '1277191': percentage for volume conversion selected according to the ratio of balances and leverages, new value 7%

2012.11.12 13:27:55    Signal    '1277191': signal provider has balance 15 000.00 USD, leverage 1:50; subscriber has balance 5 000.00 EUR, leverage 1:50

2012.11.12 13:27:54    Signal    '1277191': money management: use 35% of deposit, equity limit: 0.00 EUR, deviation/slippage: 1.0 spreads‌

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Forum on trading, automated trading systems and testing trading strategies

Signal Subscriber Lot Size Question

Sergey Golubev, 2017.02.02 07:42

Besides, you can use Calculator of the Signals (to calculate everything 'automatically' based on any pre-selected signal for example).

‌

 

Forum on trading, automated trading systems and testing trading strategies

Can you change the ratio in which a signal is subscribed to?

Alain Verleyen, 2014.02.04 13:31

You have only 2 ways to act on the calculated ratio :

  • Increase "% of deposit used" in Signals settings.
  • Add more capital to your account.

 

And the last post (with the article in pdf file):

Forum on trading, automated trading systems and testing trading strategies

Change the Volume Size

Stuart Browne, 2014.09.02 11:59

Hi georg

The only way you can change the lot size (within the rules of MetaQuotes) is to adjust your deposit, % allocation and leverage. The article here should help.


Cheers
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girisha:
I have just subscribed a signal with max drawdown of 44%. The signal provider trades 0.1 lot. I want to trade 1 lot. Please can any one advise how much deposit I need or any one can share a MQL5 blog/article explaining how to calculate the lot size will be helpful. Thanks

The max DD is irrelevant. You need about 11 times the balance of the signal provider, since you can only use up to 95% of your balance.
 
Sergey Golubev:


Thank you this is very helpful.

‌

I‌ also want to ask if I open a cent account and deposit $10,000, can I trade 1 lot? Because in order to trade 0.1/1 lot with MQL5 singals more deposit is required. Thanks

 

Forum on trading, automated trading systems and testing trading strategies

selecting lot size

girisha, 2017.03.08 14:02


Thank you this is very helpful.

‌

I‌ also want to ask if I open a cent account and deposit $10,000, can I trade 1 lot? Because in order to trade 0.1/1 lot with MQL5 singals more deposit is required. Thanks‌

As far as I understand: this is $10,000 deposit irrespective of the cent account or not.
If I am wrong so sorry.

About lot size so you should calculate it, or use Calculator of the Signals (in case of MT5 for example).

 
Eleni Anna Branou:

The max DD is irrelevant. You need about 11 times the balance of the signal provider, since you can only use up to 95% of your balance.

thank you. 11 times will be a lot
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