MT4 Position Size Calculator

Risk Management is one of the most important aspects of trading, and the size of each trade is a big part of it. MT4 Position Size Calculator is an indicator that quickly assists you in calculation of the correct lot size.

Risk Management In Trading

Whether you trade Forex, or Stocks or Indexes, Commodities, or any other instruments, it is no secret that risk management is paramount.

Risk Management consists in a set of rules that can keep your account safe from unexpected exents.

During your trading activiries you will encounter period of drawdown.

You will encounter consecutive strikes of losses.

Having good Risk Management can make a difference between having your account blown up or not.

Also Risk Management is often the difference between a successful trader and an amateur.

Risk Management includes concepts like:

  • Stop Loss
  • Position Size
  • Risk Reward Ratio

Stop Loss

A Stop Loss is your exit level when the price moves against your trade.

You can express the Stop Loss as a Price Level or as a distance from the Trade Open Price.

When the price hits the Stop Loss you should exit the trade and accept the loss.

As a general rule you should always decide your stop loss as part of the planning of your trade.

Lot Size

One of the most popular rules of risk management is to invest on each trade only a small percentage of your entire account.

This is to prevent your account to blow up in case of a strike of losing trades.

For example, if your position size is 25% of your account each trade with a strike of 4 losing trades you are left with almost nothing.

If you use only the 2.5%, after a strike of 4 losing trades you would still have more than 90% of your balance available.

Of course if the trades were winners the profit would have been higher, but we believe Risk Management is more important.

Once you decide a Stop Loss price, this will affect the calculation of the lot size, or position size for the trade.

In Metatrader the Position Size is usually expressed as Lot Size, where 1 Lot is 100.000 Units of the instrument. 

This is very common with Forex, Commodities, Stocks, Indexes and other instruments.

Another factor to consider to calculate the lot size for a trade in Forex, or another Asset, is the amount you are willing to risk.

Depending on the strategy, usually you don’t want to risk more than 1 to 5% of your balance in a single trade.

You probably know that a common rule is to risk maximum 2% of your account.

Once you decide your strategy, risk and stop loss you can calculate the Lot Size.

MT4-Lot-Size-Risk-Reward-Ratio-Calculator-Indicator-MT4-2

Risk Reward Ratio

Another important aspect of each trade, or strategy, is the Risk Reward Ratio.

You might find this value with the short name of RR or R:R or RRR.

Risk Reward Ratio is the ratio between the profit and the loss expected in a trade.

If you see a Risk-Reward Ratio of 1:2 it means you are risking 1 to gain 2.

For example you set the stop loss for a trade to 100 pips and the take profit to 200 pips, this is a risk-reward of 1/2.

Position Size Calculator Indicator For MT4

Calculating the Position Size in Metatrader is normally not a quick task.

Metatrader doesn’t offer a quick way to calculate the position size.

When you are submitting an order you are already supposed to know and type in the Lot Size for the trade.

So in this case you should calculate it manually using the formula I shared in this article.

An alternative is to use some other online tool, losing time the process.

There is an easy and quick way to Calculate the Position Size in MT4 and see the lot size and risk reward ratio.

 

Position Size Calculator Indicator For MT4 is a great tool to easily calculate the position size for a trade

 

With Lot Size Calculator you can:

  • Set your risk management preferences
  • Configure Stop Loss and Take Profit by points or prices
  • Set Stop Loss and Take Profit dragging lines on chart
  • Immediately see the possible loss and profit
  • Calculate the ideal position size to meet your risk management
  • See the Risk Reward Ratio for a trade

As you can see this trading “plugin” allow you to perform operations that usually are not so quick.

MT4-Lot-Size-Risk-Reward-Ratio-Calculator-Indicator-MT4-1

Stop Loss And Take Profit Configuration

With this indicator you can easily set the stop loss and take profit directly from the panel and adjust in the chart.

The Chart is interactive and you can move the lines to adjust the levels accordingly.

MT4-Lot-Size-Risk-Reward-Ratio-Calculator-Indicator-MT4-3

Position Size Calculator

If you set a Stop Loss the indicator immediately calculates the Lot Size to satisfy the risk management.

Stop Loss can be set as distance from the open price or as a price level.

MT4-Lot-Size-Risk-Reward-Ratio-Calculator-Indicator-MT4-4

Risk Reward Ratio Calculator

If you set both Stop Loss and Take Profit the indicator will show you the Risk Reward Ratio.

This is very useful so you can check if your rules for the strategy are satisfied.

MT4-Lot-Size-Risk-Reward-Ratio-Calculator-Indicator-MT4-6

Risk Management Parameters

The indicator also allows you to change the base, percentage and amount you risk, for flexible calculation.

MT4-Lot-Size-Risk-Reward-Ratio-Calculator-Indicator-MT4-5

Position Size Calculator

Indicator For MT4
Free
  • Risk % Configuration
  • Stop Loss By Price or Distance
  • Take Profit By Price or Distance
  • Quick Position Size Calculation
  • Drag n Drop Lines on Chart
  • Risk Reward Ration Calculation
  • Intuitive Interface
  • One Click Order Submission
  • Order Management
Popular

One Click Trade PRO

Expert Advisor For MT4
$49
$ 35
  • Risk % Configuration
  • Stop Loss By Price or Distance
  • Take Profit By Price or Distance
  • Quick Position Size Calculation
  • Drag n Drop Lines on Chart
  • Risk Reward Ration Calculation
  • Intuitive Interface
  • One Click Order Submission
  • Order Management
Popular

Indicator Installation Instructions

To install the Indicator please follow the instructions below:

  1. Download the Indicator file
  2. Open the Metatrader Data Folder (In File > Open Data Folder)
  3. Open the MQL4 Folder
  4. Copy the file in the Indicators folder
  5. (If you downloaded the source code version) Copy the Icon file in the MQL4/Files folder
  6. (If you downloaded the source code version) Copy the Error Handling and Utils files in the MQL4/Include folder
  7. Restart Metatrader

For more detailed instruction on how to perform the installation and a tutorial video please visit this page.

Please feel free to leave a feedback regarding the tool or Contact Us for any further question.

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