Money Management - page 23

[Sergey Golubev]

New article was published - 

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Money Management by Vince. Implementation as a module for MQL5 Wizard

While working in financial markets, we are constantly looking for a system that would help us earn profit. Of course, we want this system to be stable and to maintain minimum risk. For the purpose of finding such a strategy, different trading systems searching for optimal entries and exits are being developed. Such systems include technical indicators and trading signals advising when to buy and to sell. There is a whole system of price patterns for technical analysis. At the same time, Ralph Vince shows in his book"Mathematics of Money Management" that the amount of the capital used for performing trades is no less important. To optimize profit and to save a deposit, it is necessary to determine the lot size to trade.

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[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

...

Sergey Golubev, 2017.09.28 09:24

Money Management

The forum

1. MM (money management) calculation, indicators, discussion, tools: calculate your lot size and so on. Original thread with several versions.
2. MoneyManagement EA is on this thread: it shows you market information and money management on the chart. 
3. Forex Money Management, Part 1 - good small thread
4. Useful money management expert - the thread with the EA 
5. Stop Your Mind From Causing You to Take Profits Too Soon - the post with the educational video 
6. Money Management: How to Determine an Initial Stop Level - the post with the educational video 
7. Why Most Traders Lose Money and The Solution - the post with the educational video

The articles

1. Statistical Verification of the Labouchere Money Management System
   
2. Money management in trading - 
   
3. Functions for Money Management in an Expert Advisor 
4. Fallacies, Part 1: Money Management is Secondary and Not Very Important 
5. MQL5 Wizard: How to Create a Risk and Money Management Module 
6. Money Management Revisited 
7. Cross-Platform Expert Advisor: Money Management 
8. Limitless Opportunities with MetaTrader 5 and MQL5 
9. Money Management by Vince. Implementation as a module for MQL5 Wizard

CodeBase

• Money Management Script - script for MetaTrader 4
  
• Account Watch - Control entries - indicator for MetaTrader 5
  
• Money Managment Indicator - indicator for MetaTrader 4
• Example of SAR Automated - with Advanced Money Management - expert for MetaTrader 4 
• Money Manager Graphic Tool - indicator for MetaTrader 4 
• Order Manage EA - expert for MetaTrader 4 
• Master Tools - indicator for MetaTrader 4
  
• Money Fixed Margin - expert for MetaTrader 5
• Money Fixed Risk - expert for MetaTrader 5

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[Sergey Golubev]

Money Managment Indicator - indicator for MetaTrader 4

This indicator allows trader to calculate the proper lot size based on percentage risk and stop loss. The stop loss can be defined either using Average True Range ratio or fixed points.
It has been developed to operate based on Points ( 10 Points = 1 Pip ) as to consistently usable with Currency pairs, Indices and Commodities on MT4 platform

[Sergey Golubev]

Money Fixed Margin - expert for MetaTrader 5

An example for calculating the lot value with a fixed margin level. That is, if you specify 10%, a position with the margin equal to 10% of free margin will be opened.

Input Parameters:

• StopLoss (in pips) — the stop loss level
• % risk — margin for a position as % of free margin
  

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Money Fixed Risk - expert for MetaTrader 5

An example for calculating the lot value in accordance with the risk per trade.

[Sergey Golubev]

Account Watch - Control entries - indicator for MetaTrader 5

If you can't watch your statistics and your game plan at all time, your emotions will take control and you will start taking ENTRIES such as revenge trade especially when you lose it. So that is why I wanted to keep an eye on my stats and my game plan at all time, in order to control my emotions. 

I came up with this indicator that will allows me to keep an eye on my statistics and my daily target.

[Evets Odey]

Sergey Golubev #:

Money Management

It was many talking about MM in EAs today.

So I found Money Management indicator and translated some comments on the chart from Russian to English.

Just unput desirable risk, price to open the order (for example) and price for stop loss. And read comments on the chart.

It is indicator (not script).

This is a life saver! Thanks @Sergey

[Sergey Golubev]

Moral expectation in trading

Mathematical expectation in trading is one of the indicators used to evaluate a trading strategy efficiency. In 1738, Daniel Bernoulli published his work "Specimen theoriae novae de mensura sortis" (Exposition of a New Theory on the Measurement of Risk). In this work, he derived the moral expectation equation. The main difference between moral expectation and mathematical expectation is that moral expectation depends on the player's capital and implicitly takes into account the risk of the game.

[Sergey Golubev]

Money management in trading

Money management is a very important aspect for successful trading. Its main purpose is to minimize risks and maximize profits. With the right use of money management, it is possible to achieve improved trading results.

In general, money management is a set of rules that allows traders to calculate the optimal volume of positions, taking into account all the possibilities and limitations. Today, there are quite a few money management strategies to fit every taste. We will try to consider several ways to manage money based on different mathematical growth models.

[Sergey Golubev]

Risk manager for algorithmic trading

In this article, we will develop a risk manager class to control risks in algorithmic trading. The purpose of this article is to adapt the principles of controlled risk to algorithmic trading and to implement them in a separate class, so that everyone can verify the effectiveness of the risk standardization approach in intraday trading and investing in financial markets. The materials presented here will use and supplement the information summarized in the previous article "Risk manager for manual trading". In the previous article, we saw that risk control can significantly improve the trading results of even a profitable strategy and protect investors from large drawdowns in a short time period.

Following the comments to the previous article, this publication will additionally cover the criteria for choosing implementation methods in order to make the article more understandable for beginners. We will also cover definitions of trading concepts in comments on the code. In turn, experienced developers will be able to use the presented materials to adapt the code to their architectures.