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Using Stop and Target Lines to Calculate Trade Lot Size

Article MQL5 code base
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Summary

This document describes a chart indicator for estimating position size from a planned order, stop loss, and take profit. The trader adds a starter line to the price chart; the indicator then displays separate order, stop, and target lines that can be moved to set the intended trade levels. A calculation panel reports risk and money management figures, including a recommended lot size for the next order.

The user sets a risk percentage per order, with 2% given as the default example. The calculation is based on the account deposit, so the suggested size depends on that account value and the distance to the stop. The document presents a practical way to connect chart-based trade planning with position sizing, but gives no formula, instrument-specific contract details, or evidence of performance. Traders would need to check how the indicator handles pip values, leverage, currency conversion, and costs before relying on its recommendation.

Key ideas

  • The indicator creates order, stop-loss, and take-profit lines from a starter line on the chart.
  • Moving the lines updates the displayed risk and position-sizing calculations.
  • A configurable risk percentage per order is used to calculate a recommended lot size.
  • The calculation uses the account deposit, and the document does not explain instrument-specific assumptions.

Tags

Position sizingRisk managementExecution

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