Money Management Calculator
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Thread: Money Management Calculator

  1. #1
    Hello all,

    I am new to trading but I have put several hours into studying this forum and the counsel of the professionals. The first and most worried counsel given by some of the professionals is Money Management.

    There is a specific thread by Diallist which goes over the calculation for the number of blocks you ought to buy given a particular account risk. I do not find these calculations to be difficult by any means, however I will see where new folks shortcut this step. Therefor, I have made a simple but useful calculator for my wife (I do not expect her to compute risk assessment ). If there are any errors within this calculator, please inform me and I will repair it.

    If anybody else would like to use it, I have attached it to this post. I left it in excel, and anybody without excel may download OpenOffice (A free Office clone from Sun Microsystems).

    In addition, it will be cool to have a Forum devoted to forex appliions. Calculators, MT4 progr, MT4 EA's, etc.. .

    Thank you for the excellent forum, I am learning a lot. Trading a demo account at the moment, but hope to start a mini account shortly.


    https://www.nigeriaforextrading.com/...0441712795.zip

  2. #2
    Hello Que, thanks to your calculator, I use it all of the time. I have a issue, perhaps I am doing something wrong: I have my upgrade set to Metatrader, but on the calculator tab, the pip value shows the manual value, not the mt4 value (values from the information tab).

  3. #3
    Hi ,

    Quote Originally Posted by ;
    Hi,

    sharing mine as well.
    It functions really nicely! Thank you!

  4. #4
    Quote Originally Posted by ;
    Attached is the zip file with the excel and the open office version for those who are interested.
    Thank you. I am interested. And open office rules! Whoo!!

  5. #5
    Quote Originally Posted by ;
    Hello all,

    I'm new to trading but I have put many hours into studying this forum and the counsel of the professionals. The very first and most worried counsel given by any of the professionals is Money Management.

    There is a particular thread by Diallist that goes over the calculation for the number of cubes you ought to buy given a particular account risk. I do not discover these calculations to be hard by some other means, but I can see where new people shortcut this measure. Therefor, I have made a very simple but useful calculator for myself and my spouse (I do not trust her to calculate risk assessment). If there are any errors in this calculator, please tell me and I shall repair it.

    If anyone else would like to use it, then I have attached it to this post. I left it in excel, and anyone without excel may download OpenOffice (A free Office clone from Sun Microsystems).

    Also, It would be cool to have a Forum dedied to forex tools. Calculators, MT4 progr, MT4 EA's, etc.. .

    Thank you for the great forum, I'm learning a ton. Trading a demo account right now, but hope to initiate a mini account shortly.

    Que
    then you might have missed his advice to begin with a micro account first.
    The benefits are that you are able to trade smaller lots more exactly, and, thus, use 1% account risk on transactions more easily.
    I'm sure your spreadsheet is going to be appreciated and welcome to FF

  6. #6

  7. #7
    Quote Originally Posted by ;
    then you might have missed his advice to begin with a micro account.
    The benefits are that you are able to trade smaller lots more exactly, and, thus, utilize 1% account risk on transactions more readily.
    I'm sure your spreadsheet will be appreciated and welcome tonigeriaforextrading
    I will be opening a Mini account with Interbank FX. With Interbank FX your choices are Standard and Mini. Having a Mini account you are in a position to buy 0.10 lots ($1000 lots). That is equivalent to a Micro account.

    I had a lot more typed as I took your thread as quite negative as well as blatantly questioning my intelligence and reading comprehension abilities. For the sake of argument, I will assume I am just reading your reply incorrectly.

    When you look at the spreadsheet, I feel the last value is $300 account equilibrium. That is what we plan on starting with for many different factors. My wife and I will every open an account and see whether this really is for us. Using suitable money management (2% per transaction), appropriate stops, and following a system we've been demoing for a while now; a $600 investment to find out whether this is for both people is worth it.

    With the demo account on Interbank FX with the exact numbers as previously, we had been averaging about 500 pips per month with one of the simple MA approaches on this board. I understand fully that demonion live and trading trading are different, but we are hoping for 250 pips on average a month. This may be overly optimistic, but you want a goal.

    Given this aim, the egy is the following.

    -Deposit $300 in every account.

    -Reset risk assessment per week (If in the start of the week there's $300 in the account, then 2% risk is 6 a transaction. We buy 2 lots (0.10) every transaction that week lose or win. At the start of week two we reassess our account balance and adjust so. The cause of this is we do not plan on day trading the account. In our limited experience, no more then 10 trade per week is going to be made. Even if all 10 hit there stop, we are only down 20%. I am not sure how this seems to the professionals, but seems quite reasonable and effective to me.

    -Each month deposit $300 to the account.

    If the aim of 250 pips per month succeed (20% boost in funds with a 2% risk), we'll have deposited $3600 into every account. Each account will be worth roughly $14,250.

    My concerns are.

    -Is 2% account risk to a lot, or if I be at 1%? The first couple of trades could have a 6.67:1 leverage with 2% and I was advised to keep it beneath 5:1.

    -Is 250 pips a fair expectation? I know folks on this forum get upset when you speak about counting pips. But in my own case I know the exact percentage of growth that symbolizes as my risk per transaction is inactive 2%.

  8. #8
    Quote Originally Posted by ;
    I had a lot more typed as I required your thread as quite negative as well as blatantly questioning my intelligence and reading comprehension abilities. For the sake of argument, I'll assume I am just reading your answer incorrectly.
    Assumption right. Those that know me will understand that negativity is not a part of my toolbox. I normally react to new members in a spirit of help and encouragement. So we'll leave it there.
    Quote Originally Posted by ;
    My worries are.
    -Is 2% account risk to much, or if I be in 1%? The first few trades could have a 6.67:1 leverage using 2% and that I was advised to keep it under 5:1.
    Yes, 2 percent is too far, which was the point of my reply to your very first article.
    Quote Originally Posted by ;
    -Is 250 pips a reasonable expectation? I know folks on this forum get angry when you speak about counting pips. But in my case I know the exact percentage of growth that symbolizes as my risk per trade is static 2%.
    Que
    When your testing of the method has lead you to believe this then why not? You've clearly put a lot of thought into this egy, and that I wish you well.

  9. #9
    Cool... I've got a question. Have you calculated that the pip values?

    Tell me where I am counting wrong, as that is the way I do it
    say I need a standard pip value for USD/CAD. Atm USD/CAD is 1.0790, therefore 1 pip is 10 CAD here, that is 9,2678 USD. Correct? Or I am totally wrong?
    On Your excel you've utilized $6,25 as a pip value for USD/CAD... where is that number from?

  10. #10
    The pip values are not correct for all pairs. I forgot to mention that.

    This is why I gave a table at the Data sheet. All you need to do is set the right values in column B and it'll update columns C and D automatically. Because most of the pairs have vairiable pip values this was the intent.

    I shall update the calculator with the most recient pip values and repost the calculator.

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