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MT4 Position Size Calculator

Master Forex Position Sizing with Our Free MT4 Position Size Calculator

Position sizing in Forex trading is a critical skill that every trader should possess. Proper risk management separates the amateur traders from the professional ones. This comprehensive guide will provide insights into the importance of position sizing, various calculation methods, real-life examples, and a step-by-step guide to using our free MT4 Position Size Calculator. Improve your trading performance with the right position sizing strategy and reduce your risk exposure.

Importance of Position Sizing in Forex Trading

Position sizing in Forex trading is essential for both risk management and maximizing potential profits. Accurate position sizing helps traders:

  • Protect their trading account from significant losses.
  • Maintain consistent risk exposure across different trades.
  • Preserve their trading capital for the long term.

Inadequate position sizing can lead to poor risk management, causing large drawdowns or wiping out an entire trading account. A balanced approach to position sizing enables traders to remain in the market and make informed decisions, ensuring long-term success.

Different Position Sizing Methods

There are several methods for calculating position sizes, catering to different trading styles and risk tolerance levels. Some popular methods include:

  • Fixed Percentage: Traders risk a fixed percentage of their account balance on each trade. This method maintains a consistent risk level across trades and adjusts with the account balance.
  • Fixed Amount: Traders risk a predetermined monetary amount on each trade, irrespective of their account balance. This method is simple but may lead to disproportionate risk exposure.
  • Volatility-Based: Position sizing is adjusted according to market volatility, typically measured by indicators like the Average True Range (ATR). This method accounts for changing market conditions and reduces risk during periods of high volatility.

Understanding and choosing the right position sizing method for your trading strategy can help you manage risk effectively and improve overall performance.

Examples and Case Studies

To illustrate the importance of proper position sizing, consider two hypothetical traders with a $10,000 account balance:

  • Trader A risks 5% of their account on each trade. After five consecutive losses, their account balance drops to $7,696.93, a 23% decline.
  • Trader B risks 1% of their account on each trade. After five consecutive losses, their account balance drops to $9,513.58, a 4.86% decline.

This example highlights how smaller position sizes help protect a trader’s account and preserve their capital for future trades.

Using the MT4 Position Size Calculator

Our free MT4 Position Size Calculator simplifies the process of calculating the appropriate position size. Follow these steps:

  1. Download the MT4 Position Size Calculator and install it in your MT4 terminal’s ‘Indicators’ folder.
  2. Attach the indicator to the desired symbol.
  3. Set the percentage of the account balance you’re willing to risk.
  4. Move the displayed line to the desired StopLoss or TakeProfit level.
  5. Click the ‘Lot Size’ button to calculate the appropriate position size.

Additional Tips for Successful Position Sizing

Apart from using our MT4 Position Size Calculator, consider the following tips to improve your position sizing strategy:

  • Review your trading strategy regularly to ensure that your position-sizing methods still align with your overall risk tolerance and trading objectives.
  • Don’t be afraid to adjust your position sizes based on market conditions or changes in your personal financial situation.
  • Keep a trading journal to track your position sizes, risk exposure, and overall performance. Analyze your journal periodically to identify areas for improvement and make necessary adjustments.

Stay Updated with Our MT4 Position Size Calculator

We are committed to keeping our MT4 Position Size Calculator up to date to ensure you have the best possible tool for managing your position sizes. Our current version (v1.2) was updated on 04/14/2020 based on user feedback and suggestions.

Forex position size calculator download

direct download

Remember, the key to successful Forex trading is a combination of strategy, discipline, and effective risk management. Mastering position sizing and employing the right tools can make all the difference in your trading journey. Download our free MT4 Position Size Calculator today and take control of your risk management.

Frequently Asked Questions (FAQ)

How does the MT4 Position Size Calculator handle different account currencies?

The MT4 Position Size Calculator automatically adjusts for different account currencies. When you set the percentage of your account balance you are willing to risk, the calculator converts the risk amount into the quote currency of the trading pair you are analyzing.

This conversion ensures that your position size is calculated accurately, taking into account both the account currency and the quote currency of the traded pair. It helps maintain consistent risk exposure and simplifies the process of position sizing for traders using different base currencies in their trading accounts.

Can the calculator be used for multiple assets, including commodities and indices?

Yes, the MT4 Position Size Calculator can be used for multiple assets, including commodities and indices, as long as they are available on the MetaTrader 4 platform. The calculator’s functionality remains the same, automatically adjusting for the asset’s specific characteristics, such as tick size, contract size, and the quote currency.

To use the calculator for various assets, simply attach the indicator to the desired symbol (e.g., Gold, Oil, or a stock index) and follow the same process as you would with a Forex pair. The MT4 Position Size Calculator will then calculate the appropriate position size based on your risk parameters and the asset’s unique specifications.

How to adjust the calculator settings for different position sizing methods?

The MT4 Position Size Calculator is primarily designed for the fixed percentage position sizing method, where you set the percentage of your account balance that you’re willing to risk. However, if you’d like to use other position sizing methods, such as fixed amount or volatility-based, you can make manual adjustments outside the calculator.

For example:

  1. Fixed Amount Method: Calculate the position size in lots manually based on the fixed amount you’re willing to risk and the StopLoss level. Then, input the calculated position size directly into the MT4 trading window when opening the trade.
  2. Volatility-Based Method: Use an external tool or indicator like the Average True Range (ATR) to measure the market’s volatility. Adjust your position size based on the ATR value and your desired risk level, then input the calculated position size directly into the MT4 trading window when opening the trade.

While the MT4 Position Size Calculator doesn’t directly support these alternative methods, it can still be a valuable tool for visualizing StopLoss and TakeProfit levels. By combining the calculator’s visual features with manual calculations or other indicators, you can customize your position sizing approach to suit your preferred risk management strategy.

Key Related Forex Concepts

You must know several concepts that are essential when calculating position size. Below, we mention some of these concepts and give a brief explanation for each of them. You should look up all the additional information to ensure that you understand each of these concepts properly before proceeding with the calculations.

  • Forex pip: the smallest unit that measures the minimum change in the quote of a currency pair.
  • Currency pair: in FX markets shows the relation between two different traded currencies (e.g.: EURUSD).
  • Base Currency: first currency that appears in a forex pair quotation (e.g.: EUR in EURUSD).
  • Quote Currency: second currency that appears in a forex pair quotation (e.g.: USD in EURUSD).
  • Account balance: total of money available in a trading account.
  • Account equity: it’s equal to the account balance including the value of the open positions.
  • Forex lot: unit to measure standardizes trade sizes.
  • StopLoss: predetermined price that is placed in the order to close the position if the market moves in the opposite direction.

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Comments

    • barmenteros FX

      Hi Dave,

      Thank you for bringing this to our attention. We’ve just tested the Google Drive link and it appears to be working correctly on our end. However, we understand that you’re experiencing issues with it.

      To ensure you receive the file without further delay, we’re going to send it directly to your email. We hope this resolves the issue for you.

      Thank you for your patience and cooperation. Should you encounter any further issues, please don’t hesitate to let us know.

      Reply

  2. reza

    you are just the best. thank you so much for this simple and very useful indicator. this indicator literally saved me

    Reply

  3. ibill

    Thanks for this indicator. It’s nice and useful.
    However, for indices instruments like US30/US500/US2000 etc, the lot size is not correct. I suspect it is related the different specification (digits/contract size) from currencies instruments?

    Reply

    • barmenteros FX

      Hi. Thanks for your feedback. Can you send us a screenshot showing an example of wrong lot size and what should be the correct size in this case? If possible, tell us what calculation you use for getting the lot size or if you use a different tool to get the right size calculation. Best regards

      Reply

  7. Ese

    I tried using the calculator but it does not work. When I click the Lot size button it does not show the size.
    I see the following messages in ‘Experts’ tab of Terminal window.
    2021.01.08 01:10:10.220 Lot Size Calculator v1.2 AUDJPYi,H4: GetPipValue » fail to get pip value for AUDJPYi

    2021.01.08 01:18:39.218 Lot Size Calculator v1.2 AUDJPYi,H4: GetPipValue » fail to get pip value for AUDJPYi

    2021.01.08 01:18:39.218 Lot Size Calculator v1.2 AUDJPYi,H4: IsSymbolList » JPYUSD’AUDJPY’ (Unknown symbol)

    2021.01.08 01:08:04.332 Lot Size Calculator v1.2 EURNZDi,H1: IsSymbolList » NZDUSDEURNZD pro >> pro (Unknown symbol)

    2021.01.08 01:06:22.541 Lot Size Calculator v1.2 EURNZDi,H1: GetPipValue » fail to get pip value for EURNZDi

    Please what can I do to make it work?
    Regards.

    Reply

  8. Felipe

    Anyway to create two more lines? For Pending order and for TP, that way, the indicator would show the risk reward as well. For the pending order line, we would be able to choose an entry point for the calculation of the lot size and risk reward.
    Better yet if it was made into an EA, that way, it would calculate all of that AND we would just need to click buy/sell button made by the EA.

    What do you say?

    Reply

  9. Dewa Setiawan

    hi, I am Dewa from Bali island Indonesia. I am trying to googling for this type of indicator which can help me for the money management. After I installed to my MT4 it’s look really helpful. only one question for you, this percentage is from the current balance or start balance? i thank you very much hard work making this indicator.

    Reply

  10. Choy Jian Hao

    Came across this site while I was googling for this indicator instead of toggling between website and mt4 to find the lot size base on my risk percentage. All I can say, this indicator really saves time even for just few secs which makes a lot of difference especially in FX trading. Looking forward to improvement and other useful indicators. Keep it up, TS.

    Reply

  11. Tyrone

    I tried using it but it doesnt work. When I click the Lot size button it doesnt show the size. I also have a gray circle on the Lot Size Cal in the navigator tab. I did some research and it seems that I may need to compile the mq4 file as well. DO u have that? or a workaround.

    Reply

    • Barmenteros FX Staff

      Hi Tyrone. Are you getting any error message in ‘Experts’ tab of Terminal window? If so, what’s the message? Otherwise, send us a screenshot showing the error. Gray circle in the navigator tab is not a problem. You don’t need the mq4 file in order for the indicator to run properly. Thanks

      Reply

      • Tyrone

        Thanks fr the quick response. Yes I actually do get an error message. I cant seem to post a screenshot. But the error message says

        “2020.04.14 13:49:20.668 Lot Size Calculator v1.0 CADCHF…..,M15: IsSymbolList » USDCHF (Unknown symbol)”

        “2020.04.14 13:49:20.668 Lot Size Calculator v1.0 CADCHF…..,M15: IsSymbolList » CHFUSD (Unknown symbol)”

        “2020.04.14 13:49:20.668 Lot Size Calculator v1.0 CADCHF…..,M15: GetPipValue » fail to get pip value for CADCHF…..”

        I think the reason why its not working is due to the naming convention of my broker for the currency pairs. It adds 5 fullstops after the XXXXXX, and maybe that causes the “unknown symbol” error message. Or maybe its something else.

        Reply

        • Barmenteros FX Staff

          Thanks for the report. A new version is available now. You can enter the suffix of your symbols in the input parameter ‘Symbol Suffix (eg: XXXXXXpro » pro)’, so if your symbol is ‘CADCHF…..’ you should enter ‘…..’ in the input parameter ‘Symbol Suffix (eg: XXXXXXpro » pro)’. This new version also shows the risk percent in the panel so the user will be able to change it directly from the panel. Best regards

          Reply

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