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Position Sizing from Risk Percentage and Stop Distance

Article MQL5 code base
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Summary

This brief description explains a simple position-sizing calculator for MetaTrader 5. The user supplies a desired risk as a percentage and a stop distance in pips, and the indicator returns a lot size intended to fit those inputs. The document therefore presents a practical link between planned trade risk, stop placement, and position size, rather than a signal for choosing when to enter or exit a trade.

The source gives no calculation formula, examples, assumptions about account currency or instrument contract specifications, or performance evidence. It also does not explain whether costs, slippage, or gaps are included. Traders would need to check how the tool handles those details and verify the resulting size against their broker’s rules before relying on it.

Key ideas

  • The calculator uses a target risk percentage and stop distance in pips to estimate lot size.
  • It supports position sizing rather than identifying trade entries.
  • The description does not disclose the formula or treatment of instrument and account details.
  • No testing results or evidence of sizing accuracy are provided.

Tags

ForexRisk managementPosition sizing

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.