Calculate SL from currency loss

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Hello.

I am sure this has been asked before, but I couldn't find it in the forums.

I am trading 0.5 volumes of an instrument quoted at 1840.922 USD. Tick size is 0.001 and tick value is also 0.001. I am willing to lose 5 USD. How do I calculate stop-loss to use in the New Order window?

Thanks.

 
Since you want to do it manually, I suggest searching google with something like "forex calculator" or similar, it should also support gold, usually.


 
Dominik Christian Egert #:
Since you want to do it manually, I suggest searching google with something like "forex calculator" or similar, it should also support gold, usually.


The problem is that these calculators are always tied to a currency pair, and I am using a synthetic indice that does not exist in these calculators....

 
Thierry Waltrich Augusto: I am trading 0.5 volumes … How do I calculate stop-loss 

Risk depends on your initial stop loss, lot size, and the value of the symbol. It does not depend on margin and leverage. No SL means you have infinite risk (on leveraged symbols). Never risk more than a small percentage of your trading funds, certainly less than 2% per trade, 6% total.

  1. You place the stop where it needs to be — where the reason for the trade is no longer valid. E.g. trading a support bounce, the stop goes below the support.

  2. AccountBalance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the spread, and DeltaPerLot is usually around $10/PIP, but it takes account of the exchange rates of the pair vs. your account currency.)

  3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
              MODE_TICKVALUE is not reliable on non-fx instruments with many brokers - MQL4 programming forum (2017)
              Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum (2018)
              Lot value calculation off by a factor of 100 - MQL5 programming forum (2019)

  4. You must normalize lots properly and check against min and max.

  5. You must also check Free Margin to avoid stop out

  6. For MT5, see 'Money Fixed Risk' - MQL5 Code Base (2017)

Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5 or 0.1 Lots maximum.

 
[Risk] = [Volume] * [Stop Loss] * [Tick Value] / [Tick Size]
[Stop Loss] = [Risk] * [Tick Size] / ( [Volume] * [Tick Value] )

Given:
[Tick value] = 0.001 USD
[Tick size] = 0.001
[Risk] = 5 USD

Then:

[Stop Loss] = 5 USD * 0.001 / ( 0.5 * 0.001 USD ) = 0.005 / 0.0005 = 10


Therefore for an a buy position with open price of 1840.922, the stop loss would be 1840.922 - 10 = 1830.922

However, you only supplied one of the price quotes. You need both the Ask and Bid prices to properly set the stop-loss.

  • Buy orders open at the Ask price and close at the Bid price
  • Sell orders open at the Bid price and close at the Ask price
 
Fernando Carreiro #:
[Risk] = [Volume] * [Stop Loss] * [Tick Value] / [Tick Size]
[Stop Loss] = [Risk] * [Tick Size] / ( [Volume] * [Tick Value] )

Given:
[Tick value] = 0.001 USD
[Tick size] = 0.001
[Risk] = 5 USD

Then:

[Stop Loss] = 5 USD * 0.001 / ( 0.5 * 0.001 USD ) = 0.005 / 0.0005 = 10


Therefore for an a buy position with open price of 1840.922, the stop loss would be 1840.922 - 10 = 1830.922

However, you only supplied one of the price quotes. You need both the Ask and Bid prices to properly set the stop-loss.

  • Buy orders open at the Ask price and close at the Bid price
  • Sell orders open at the Bid price and close at the Ask price

Very well explained, thanks!

 
Thierry Waltrich Augusto #: Very well explained, thanks!

You are welcome!

 
Fernando Carreiro #:
[Risk] = [Volume] * [Stop Loss] * [Tick Value] / [Tick Size]
[Stop Loss] = [Risk] * [Tick Size] / ( [Volume] * [Tick Value] )

Given:
[Tick value] = 0.001 USD
[Tick size] = 0.001
[Risk] = 5 USD

Then:

[Stop Loss] = 5 USD * 0.001 / ( 0.5 * 0.001 USD ) = 0.005 / 0.0005 = 10


Therefore for an a buy position with open price of 1840.922, the stop loss would be 1840.922 - 10 = 1830.922

However, you only supplied one of the price quotes. You need both the Ask and Bid prices to properly set the stop-loss.

  • Buy orders open at the Ask price and close at the Bid price
  • Sell orders open at the Bid price and close at the Ask price

Hello Fernando.

To calculate stopless according to the formula you sent: 

[Stop Loss] = [Risk] * [Tick Size] / ( [Volume] * [Tick Value] )
How do I calculate the volume as an input in the formula? Do I have to set a fixed volume for all symbols, for example 0.1? (This is a paradox, I need stopless to calculate volume and volume to calculate stopless)

I want calculate sl. my margin be same risk (for example: balance=1000$, risk=margin=10$);
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