How to calculate Maximum lot size based on Equity - page 2

[Riko Dewaner]

Assume:

you use fix money risk
and minimum sl distance based on certain times of spread, since it's not wise to have a SL distance too close. And this is most of the time compared to spread. This way you can assume that you can use the least distance with a pair/asset with the least spread let say eur/usd, assume it's 1 pip. And again, just assume that 1 pip equal to 1 bp(basis point) which is 1/10000 parts
And the leverage is, let say, 1:100
And your balance is about usd 5000
And your profitability is 50% of your SL
And your SL is at least 10 times spread
And margin call level is 100%

So maximum volume is
usd 5000 / (1 / 100 * 1 + 0.0001 * 10) = usd 454545.454, round it down to usd 454000 in lot usd 4.54. Round it down, not up

Maximum total risk is
usd 454000 * 0.0001 * 10 = usd 454

With that you will open position with maximum risk usd 454, which will use up all your balance. Or devide it evenly as you wish and open every trade with that maximum risk

The formula
Balance / (1 / leverage * [margin call limit] + [pip converted to bp(basis point, unit of 1 / 10000]) = [max volume in usd]

[max volume in usd] *  [pip converted to bp(basis point, unit of 1 / 10000] = [max risk in usd for calculated balance]