A Tool to manage position sizing
Simple calculator to calculate position size for each trades. It’ll help you to manage risk like professional. Using correct position size according to your allocated risk percent is very important. In-fact most professional traders may say using correct position size the most important part of risk profile.
Some novice or those who doesn't care about proper risk management may say something like "I always use 1 mini lot for each trade with Risk:Reward 1:2"
Consider the following and see how wrong is such statement:
Trader A is using proper position size while trader B is using fix position size. Both using same Risk: Reward 1:2 and same risk percent. Lets assume both took same 2 trades, one winner one looser each.
Trader A Trade 1:
S/L pips: 50 - According Trader A risk percent trader A maximum position size is 1 lot. Target hit and 100 pips won = ($+1,000.00 - lets assume pip value is $10.00)
Trader A Trade 2:
S/L pips 100 - According to Trader A risk percent trader A maximum position size is 0.5 lot. S/L hit and 100 pips Lost = ($-500.00 - lets assume pip value is $10.00)
Trader B not using position sizing and always trade with fix 1 lots at a time
S/L pips: 50 - Position size is 1 lot. Target hit and 100 pips won = ($+1,000.00 - lets assume pip value is $10.00)
S/L pips 100 - Position size is 1 lot. S/L hit and 100 pips Lost = ($-1,000.00 - lets assume pip value is $10.00)
As you can see after two trades Trader A balance is +$500.00 while Trader B balance is zero who is not using position size.
Instead of developing or using similar one already developed MT4 indicator, why we choose to develop AG Trading Tools - Calculators as a desktop application of it's own. Main reason is to keep trading charts clear and not having any dependency on changes of MT4 platform. Beside dropping an indicator on every chart, then closing them and re-doing is not a desirable task. You have an independent application that's always there regardless you uninstalled and re-installed MT4 platforms.
It's portable so no installation is required. Unzip to desired location and run by double clicking on "AG_TradingTools.exe" file in "Trading Tools - Calculators" folder.
Please keep in mind AG Trading Tools - Calculator is a Microsoft Windows® application. It won't run on Mac OS or Linux. It's tested on Windows 7 only.
AG Trading Tools - Calculator is a freeware. You can download and pass around freely.
We hope you enjoy using AG Trading Tools - Calculator and benefit your trading.
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