Money Management Rules

You can choose between a long list of Money Management capabilities to add to your trading strategy

 

Trade Size

Your strategy is required to specify a trade size.

Fixed Amount - the amount, in lots, you wish to trade. You can specify a value unique value for trading long or short. Note - your broker will likely have a minimum and maximum size you can trade. The lot size you enter here must be compatible with what your broker accepts, else the strategy will not trade.

Variable trade size - measured as the % of your account equity you wish to use a margin collateral to open the specific position. The actual trade size will then depend on the leverage you trade on. Using variable trade size means you will automatically take less risk when your account suffers losses and bigger risk when it becomes profitable.

 

Position Take profit

  • in Amount
  • in pips 

Which ever comes first will trigger the position take profit.

 

Position Stop Loss

  • in Amount
  • in pips 

Which ever comes first will trigger the position stop loss.

 

Trailing Stop Loss

  • in points

 

Multiple Entry Signals

This rule allows you to manage:

  • What do you want to do when your strategy wants to open an additional position?
  • What do you want to do if that additional position is in the opposite direction? (Eg. you already have a long position and now the strategy wants to open a short position)

 

Maximum Exposure

This rule allows you to place a limit to the exposure your strategy will be able to open as measured in % of your account equity is used for margin. When you pass the desired threshold the strategy is unable to open more trades in the same direction. Which would result in additional margin requirement. Additionally, you are able to chose to automatically close either "all", "profitable" or "loosing" positions. 

It is calculated by dividing your margin amount with your current equity x100. Eg. you have to place USD 100 to have a position open and you have USD 1000 in equity. Then your exposure will be 100 / 1000 x 100 = 10%

Notice: while you may not be able to open more positions, the strategy remains 100% operational and will continue to monitor Money Management rules and for opposite direction trades.

WARNING: When activating the option to close "all" or "loosing" position please be warned that should opening just one position result in the threshold level to be breached the rule will trigger instantly and the position the strategy just opened will be closed right away. Exceeding the maximum exposure, and thereby triggering the rule of closing all or loosing positions could in fact be true for longer periods of time, causing the rule to trigger, thereby opening and closing positions immediately over and over again.

 

Strategy Stop Loss

This rule monitors your account equity. You can choose to set a threshold for your your account drawdown, or your equity amount, or both.

 Should either of these thresholds be met, the following consequences will be activated:

  • All profitable or
  • All losing or
  • All trades
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