Easy Forex Risk Calculator MT4 (Position Size Calculator)

hi everybody and welcome back to my channel in this video i'm going to share with you a new tool that i've come across called the risk calculator and this calculator is used together with metatrader 4 or metatrader 5 to really help to manage the risk and your overall account when you are trading i've used some different position size calculators before metatrader but i find that this one really has lots of brilliant features to use and it's really quick and it's really easy i'm going to show you more so let's jump onto the charts [Music] okay everybody so here is the website for the risk calculator that i'm going to be showing you today and it is a really cool tool that is to be integrated into metatrader4 to help you to manage your risk so that it makes it a lot quicker it makes it a lot safer for trading for managing your risk in your account and it just makes it a lot more easier to trade so if you can make the anything easier to trade it's a bonus right and as you can see on the screen here there are quite a few features that this risk calculator does offer but i'm going to show you those in my broker account in just a moment but just to give you a very vague idea you can use it to calculate your risk so you enter in a percentage rate and also what profit target you're aiming for so you can enter in your ratio there you can use it to execute trades based on the current market data or you can set them up as pending orders so it does give you a lot of flexibility there for calculating your risk for trading and in terms of cost for the calculator is on a monthly subscription basis so at the moment it is set on sale here at 9.99 and that gives you access to the risk calculator each month in metatrader 4 as well as 24 7 support if you have any problems with the software if you do want to find out more information on the risk calculator in addition to what i'm going to share with you in a moment in this video you can simply go to riskcalculator.app to visit their website i'll include a link below in the description but let's jump into it on metatrader4 so when you do actually purchase this calculator you do have a guidebook as well as a video on how to install it now i've already installed it i've got it here in metatrader4 under expert advisors and all i'm going to do is double click that i'm going to click to allow live trading and also the dll imports that will display it here and i can press alt and t to just get rid of the generic buying tool that metatrader4 supply also i'm going to click auto trading up here so that's green so that basically sets it up ready to work now as you can see i'm in my demo account here because i don't want to play around in my live account and i'm not obviously following any strategies on this video this is just to show you the mechanics of how this calculator works so please don't judge my trading on this before this i'm one pound dollar and just on the hourly here and as it's looking quite extended and we are coming up to one o'clock i'm going to look for um some pending orders here to buy so let's see if we can get some orders set on this so i'm gonna leave the risk at one percent so it's gonna be one percent of my demo account balance which you can see down here in the bottom left corner and for the moment i'm gonna just set a two ratio and as you know we're going to buy so let's click buy calc and that will set these two lines here the green one above is the profit target and the red one below is the stop loss and it's so brilliant because it just makes it so easy you see the way i used to calculate my risk would be on an external website as you probably know if you saw my video how to calculate your lot size and there's quite a process and you have to keep added information every time you want to change your stop to calculate your position size and it just makes it quite a long arduous process for trading which sometimes they don't always have the time for so it can cost money right whereas with this tool all i'm going to do is reduce this bottom red line here which represents my stop loss and i'm going to set that at let's just leave this at about 10 pips for the purposes of this video and as you can see because we've set a two to one profit loss ratio it's automatically moved this green line representing my profit target to be two times my stop loss so i'm risking 10 pips to make 20 pips but i can go ahead and get into that trade now and i'll i'll show you that right now so if i click execute trade and as you can see i'm right in at that entry at market price and those two lines that we had representing stop order and target have now been changed to the generic dotted lines that metatrader4 have which you can still edit so it just sets those for you to make it easier and quicker but you can obviously edit those if you change your mind when you're in the trade so if you get in and it does go towards your original profit target which at the moment is set at 60 i can still change that i can make that higher and it's fully customizable i'm going to put that back to 60 now and that was it how easy is that the other great feature that the wrist calculator uses is it does have these options at the bottom here you may have seen them that it gives you the ability to alter your order as you are in the game so for example you can close half of your position you can close a customized part of your position so if you want to close say a quarter of your position you can do that it allows you to automatically set your stop loss to break even so it just makes it a lot quicker when you're in the trade rather than dragging the lines you can simply press a button and have that alter your order live right then and there or you can set partial take profit so as i say if you want to take a third of your profit off the table you can do that using this button here so let's say that we want to play one of those features now as price is starting to push up into profit as i said i'm not following any plan or strategy here but just demonstrating the features on the calculator let's edit this and let's just close half of our position so we need to do is select our open trade the number corresponds here to the order number of the current open trade and as i am just getting five pips in profit watch this 12.79 size number here and i'm going to close half of that and you'll see that has now halved and we've taken half of that profit off the table we can find that here on the bottom now i've sold half of that i can then select my open order again and click on stop loss to break even and you'll see that the red dotted line has now jumped up to my entry and my stop loss has now changed straight away to my entry price it just makes it so quick and easy so i have just managed to sell half of my position and set my remaining stop loss to break even so now i know that this is a winning trade if price comes back down to my entry at 0.40 i've already taken half of my profit in winnings and now that is going to hit my stop so i will not lose anything so just a really useful tool to save time and ultimately save your account because that's the whole point of this tool is to manage your risk to preserve your capital which is essential for trading and as you can see prices has come down and it has hit my adjusted stop at break even so now i'm out of that trade and if we just go into my account history here you can see the top row was the adjusted take profit here when we were a few pips in profit so that's where we sold half of our position and the last row here was the addition we did to set the stop loss to break even so managed to get a little bit of profit out of that trade and avoid losing thanks to this useful risk calculator and just to throw another example let's do it at a pending cell order just to explore the other end of the spectrum so again i've got my risk there you can change that but i do like to keep that at one percent and ratio i'm going to make that 1.5 this time and let's do a cell calculation okay so i'm going to set a very small stop-loss let's just set it at five pips here soon as we're on the one-minute time frame and let's click on pending order now that has just changed us and it's automatically set it to a buy so let's just swap these two around to make that a cell and i'm going to move this yellow line up here so we make that a cell limit so if price comes up to hit that point we're going to automatically get in and i'm going to set a five pip stop which is automatically calculating my 1.5 target and let's execute and enter into that pending order here so as you can see we're not actually in this trade yet it is looking to sell when price hits four seven three at the moment we're at 437 as you can see here so if price pushes up higher into that level it's going to automatically sell the one percent off my account as part of that pending order i think the real benefit for this calculator although as you can see you can utilize it in day trading or even scalping but i think it really helps for especially for people who are looking to swing trade or hold positions around other commitments they may have such as work commitments or family life because you can do your technical analysis you can use the calculator to calculate your risk and your ratio for profit and you can set these orders especially the limit and stop orders which are really really handy because if price comes to hit a certain point in the market a market structure where you think they might react to you can set a pending order and you can walk away and let it do its thing and know that you're managing your risk you're managing your account balance and you're going to get into that trade if it hits that point and if it doesn't then obviously you're not so it's just a really useful way to use the risk calculator to help you to trade even if you are struggling to find the time to sit down and de-trade right i'm not sure if price is actually going to play with us on this one so i'm going to cancel that one i'm going to do another sal pending order so let's set it this time just down here and let's swap these two around so that we have a cell stop i'm going to do the same and use a 5 pip stop 10 pip sorry 5 pip stop and 7.5 pip target and i'm going to enter that in here because as you can see we are working down to this level so if it crosses 38.5 it's currently at 40. it's going to enter us into this trade as part of the sell stop but we know that we've already got our stop loss and take profit set so we can just sit back and see what happens right so price has crossed that point here and we are into that trade at 38.5 and price is currently 39.4 again i'm not following any set strategy here just demonstrating this tool our stop loss is automatically set five pips from our entry and take profit is set at seven and a half pips from our entry and that's the beauty of the stop orders is that it just tends to go with price so as price has dropped into our stop activating our sal at that point and it's continuing down i'm only a pip or so in profit but again i can now close half of that i can set my stop loss back at break even on this open trade here so that i know now that again this cannot lose i have now taken half of my profits which i can see here four pound dollar and my current trade is still open here it's currently at 35 five so we are still in profit here i'm going to let it just run to that target if it makes it so that we can let the trade play out it's getting very close now to that take profit i can still press alt t and see here that we are 32 by 33 so i need obviously this buy button to hit 31 0 for the take profit in order to activate looks like it's seen some resistance but it's okay because i know that my stop-loss has now been adjusted to break even so it's all okay and i just got back from having my lunch and just looking at the screen now and i can see that that trade has now finished so let's go into account history and it did actually come back up to hit my altered stop loss and it must have gone quite quick so we did have one marginal pip out here so basically break even there so there's a brief introduction for you on the risk calculator app which i find is absolutely brilliant it takes the pressure of having to figure out what your position size what lot size to take for trades which can sometimes be quite confusing and it can sometimes really slow down the process which might even make you miss out on trading opportunities but as you can see this really cool tool here just makes it so easy to enter in your risk your profit loss ratio calculate what your stock is your profit target is and execute them and that's it it's as easy as that so if you've got any questions or comments do leave them below if you want to check out the risk calculator i'll include a link below where you can click through to get one of those as i said it's quite cheap it's only just under ten dollars a month and it just really does help you to manage the risk on your account don't forget to hit the like button if you enjoyed this video and subscribe for more videos and i'll catch you in the next one thanks guys bye [Music]

Channel: Mindfully Trading

Views: 12,448

Keywords: forex trading, forex market, forex trading for beginners UK, forex trader, forex trading uk, day trading forex, forex trading explained, day trading for beginners, day trading for beginners UK, trading for beginners 2020, day trader documentary, beginner day trader, warrior trading student, mindfully trading, forex risk calculator mt4, risk reward ratio indicator mt4, position size calculator, forex calculator app, risk management forex mt4, lot size calculator mt4

Id: W416hCfFrhQ

Length: 13min 30sec (810 seconds)

Published: Tue Nov 03 2020