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I have just subscribed a good signal service here on mql5.com, but I have some questions.

Given my signal provider has a 99% win ratio, is it safe that I use the maximum 95% in the setting option?

My signal provider use fixed lot size of 5, if I set to 95% what lot size will I have if my account balance is $500?
 
sunny7day:
I have just subscribed a good signal service here on mql5.com, but I have some questions.

Given my signal provider has a 99% win ratio, is it safe that I use the maximum 95% in the setting option?

My signal provider use fixed lot size of 5, if I set to 95% what lot size will I have if my account balance is $500?

 

99% win ratio is normally a sign of no stop loss and prayer! :) Lot sizing issues are answered here:  https://www.mql5.com/en/blogs/post/23777

 

Simple Steps To Correct Lot Sizes When Subscribing To Signals
Simple Steps To Correct Lot Sizes When Subscribing To Signals
  • 2014.09.07
  • Filter
  • www.mql5.com
Introduction You've been searching all over the MQL signals database for a signal that fits your risk/reward appetite and you think you've finally found your holy grail!! The numbers look perfect,...
 
thank you!

But I don't fully understand the article you gave me, can you please tell me how to increase the lot size? Is it just set to 95% is OK?
 
sunny7day:
thank you!

But I don't fully understand the article you gave me, can you please tell me how to increase the lot size? Is it just set to 95% is OK?

No, your balance is only one part of the equation. Try downloading the excel calculator in that article, it will do all of the calculations for you.

In simple terms, the calculation is:

  1. Your balance compared to the signal balance eg:    YOUR BALANCE * % USED /  SIGNAL BALANCE (ignore differences in currencies)
  2. Your leverage compared to the signal leverage eg:    RESULT OF STEP 1  * (YOUR LEVERAGE / SIGNAL LEVERAGE) 
  3. Currency conversion eg:    RESULT OF STEP 2 * CURRENCY CONVERSION BETWEEN YOU AND SIGNAL CURRENCY
  4. Rounding algorithm. The result of Step 3 rounded to: 

  • If the value is less than 1%, it is rounded up to 1%, i.e. assumed to be 1%. Example: 0.25% => 1%
  • If the value is greater than 1% and less than 10%, it is rounded down to the nearest whole number. Example: 6.96% => 6%
  • If the value is more than 10% and less than 100%, it is rounded down with a step of 5%. Example: 28.7% => 25%
  • If the value is more than 100% and less than 1000%, it is rounded down with a step of 10%. Example: 127.6% => 120% 

    •  

    Hope that clears it up

     
    Filter:

    No, your balance is only one part of the equation. Try downloading the excel calculator in that article, it will do all of the calculations for you.

    In simple terms, the calculation is:

    1. Your balance compared to the signal balance eg:    YOUR BALANCE * % USED /  SIGNAL BALANCE (ignore differences in currencies)
    2. Your leverage compared to the signal leverage eg:    RESULT OF STEP 1  * (YOUR LEVERAGE / SIGNAL LEVERAGE) 
    3. Currency conversion eg:    RESULT OF STEP 2 * CURRENCY CONVERSION BETWEEN YOU AND SIGNAL CURRENCY
    4. Rounding algorithm. The result of Step 3 rounded to: 

  • If the value is less than 1%, it is rounded up to 1%, i.e. assumed to be 1%. Example: 0.25% => 1%
  • If the value is greater than 1% and less than 10%, it is rounded down to the nearest whole number. Example: 6.96% => 6%
  • If the value is more than 10% and less than 100%, it is rounded down with a step of 5%. Example: 28.7% => 25%
  • If the value is more than 100% and less than 1000%, it is rounded down with a step of 10%. Example: 127.6% => 120% 

    •  

    Hope that clears it up

    I would never suggest setting your max lot size to 95% or atleast until you know how the signal trades, especially for signal providers with super high win ratios like 99% (often this might indicate that provider will keep the signal open, even in conditions of high drawdown (DD%), therefore putting you in a danderous position if using max size of 95% lot size.

    When subscribing to a new signal, I suggest, start it low, say 10%. Let it run for a while, few days, weeks, months, until you have a better idea how the signal trades and the lot sizes. Then if happy with the way things are going. Incrase the lot size, or look around for a better signal if you are not happy. You can change lot size as you like, it won't effect existing open trades (it doesn't seem to).

    The rule of thumb I use to determine the lot size (filter has provided a much more comprehensive link), is (and it really depends on their settings and how they determine lot sizes), click on the equity tab, look at their equity. If they have say $10K in their acct and their lot sizes are typically 1. If your acct has $1K equity and you have your max lot size set to 10%, then I would expect to see trades as per below...

    $10K = lot size 1

    $1K = lot size 0.1

    10% max = lot size 0.01 (10% of the above).

    Similarly, 50% max = lot size 0.05 based on the above equities, 95% would = lot size 0.09 (approx.)

    I think that is how it works, that seems to get it close anyway. I am sure others can comment further, but this seems to get me in the rough ballpark. This is why it's good to try first with low settings, then move things up when comfortable.

    Steve

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