Margin strategies to avoid margin calls

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Hello forum

Would anyone happen to consider margin calls better than not using stops? Well, I don't so I was hoping to figure out how to manage margin.

So like every trade has a stoploss and that amount of margin in use would then be combined with other trades so you know the margin-call zone.

Does this technique have it's draw-downs? Haha, no pun intended. So anyways does this fit a secure profile to protect equity from margin calls?

 

the higher your leverage the worse letting margin calls will be.  There is no doubt if you use margin calls you account will be blown up.

If you mean some else than just nature running it course and using "mental stop losses" rather trading until destruction than maybe I misunderstood your question.

 
Brian Lillard: Would anyone happen to consider margin calls better than not using stops? Well, I don't so I was hoping to figure out how to manage margin. So like every trade has a stoploss and that amount of margin in use would then be combined with other trades so you know the margin-call zone. Does this technique have it's draw-downs? Haha, no pun intended. So anyways does this fit a secure profile to protect equity from margin calls?

If you don't physically place a stop-loss, you should still do proper position sizing based on both a margin percentage as well as a risk percentage on an ideal or soft stop-loss price (soft risk) but you should still consider placing hard physical stop further away for a catastrophic failure (hard risk).

So, by contemplating all three, soft risk, hard risk and margin, you can properly size your position and apply proper money management so that you NEVER* get a margin call. (* except in the case of a drastic market crash).

 

Ok let me clear this up -- if an EA was adding many positions with large stops could the strategy be preventing exit by stops versus margin call and how to avoid that?

 
You must place a stop loss before the stopout level
Basic Principles - Trading Operations - MetaTrader 5
Basic Principles - Trading Operations - MetaTrader 5
  • www.metatrader5.com
is an instruction given to a broker to buy or sell a financial instrument. There are two main types of orders: Market and Pending. In addition, there are special Take Profit and Stop Loss levels. is the commercial exchange (buying or selling) of a financial security. Buying is executed at the demand price (Ask), and Sell is performed at the...
 

so again all positions have stops, yes before stopout level, but margin level 100 i believe disallows additional positions -- does it mean that atleast one order can't close to margin call?

no, margin level at some point in time would indicate that by adding an additional position that the stop in addition to other stops would incur a margin call by the broker stop level.

//--

Not sure but I think this code may be the answer: Calculation of the number of lots by Anton Trefolev. - script for MetaTrader 4

// + ----------------------------------------------- ------------------- +
// | Koef_f.mq4 |
// | Yuriy Tokman |
// | yuriytokman@gmail.com |
// + ----------------------------------------------- ------------------- +
#property copyright "Yuriy Tokman"
#property link "yuriytokman@gmail.com"

#property show_inputs

#define STOPOUT 0.8

extern bool fixedfrac = true;
extern double f = 0.1;
extern int stoploss = -100; // depends on the system
extern double maxlot = 0;
// + ----------------------------------------------- ------------------- +
// | script program start function |
// + ----------------------------------------------- ------------------- +
int start ()
  {
// ----

   double b = Lots ();
   if (lots ()> 0) Alert ("Lots:", b);
   else Alert ("Oops! Not Found.", b);
// ----
   return (0);
  }
// + ----------------------------------------------- ------------------- +

double lots ()
  {
   double a, b, lot;

   if (! fixedfrac) return (f);

   if (f <0.01 || f> STOPOUT || stoploss> = 0)
   return (0.1);

   a = NormalizeDouble (AccountBalance () / MarketInfo (Symbol (), MODE_MARGINREQUIRED) - 0.1, 2);
   b = NormalizeDouble (AccountBalance () / ((-stoploss * MarketInfo (Symbol (), MODE_TICKVALUE)) / f), 2);
   if (a <b)
    lot = a;
   else lot = b;

   if (maxlot> 0)
     return (MathMin (maxlot, MathMax (lot, 0.1)));
   else
  return (MathMax (lot, 0.1));
}

this returns the max lot allowed, taking into consideration the margin required, to be safe from a margin call ??

honestly i'm having difficulty understanding it which i could say is due to lack of proper coding practices.

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