Position Size Calculator Based on VP Money Management rules Indicator For MT4

Position Size Calculator Based on VP Money Management rules Indicator For MT4

Table Of Contents:

  1. Position Size Calculator Based on VP Money Management rules Indicator For MT4
  2. Trading ideas with the Position Size Calculator Based on VP Money Management rules Indicator For MT4
  3. Customizing the Position Size Calculator Based on VP Money Management rules Indicator For MT4
  4. Position Size Calculator Based on VP Money Management rules Indicator For MT4 - Buy Entries
  5. Position Size Calculator Based on VP Money Management rules Indicator For MT4 - Sell Entries
  6. Position Size Calculator Based on VP Money Management rules Indicator For MT4 - Conclusion

The Position Size Calculator Based on VP Money Management rules Indicator For MT4 is an indicator which is here to make your money management practices a lot more effective and economical. Money management is one part of trading which retail or novice traders overlook the most and the reason being is that it is not an attractive part of trading. Irrespective of how unattractive money management may seem to you, it still remains one of the most important aspects of your trading to bring you success especially when it comes to calculating position sizes to manage the risk of each trade you make; this indicator will take care of all your position sizing activity using the ATR metrics, stop loss factor and take profit calculator.

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Trading ideas with the Position Size Calculator Based on VP Money Management rules Indicator For MT4


There is nothing that can be as hectic as how to manage the risk of trading both for forex beginners and experts. Risk management is one of the core practices for successful trading.

It is unfortunate that most indicators only help traders with the type of trade they should place and when they should place and close it but does not breakdown how the risk management aspect should be integrated when placing and closing the trade.

One of the best risk management strategies in forex is the use of stop levels (both stop loss and take profit levels).

And that is where Position Size Calculator Based on VP Money Management rules Indicator For MT4 comes in. This MT4 indicator helps you to amount of money you shall be risking depending on the risk percentage you choose to use. It also uses the ATR to help you determine the take profit and stop-loss levels.

However, it should be noted that the Position Size Calculator Based on VP Money Management rules Indicator For MT4 does not identify the market trend and that is why it gives you the stop loss and take profit levels of buy and sell orders at any given time. It is upon you to choose the strategy or indicator you shall use to determine the market trend to choose the appropriate trade to place.


Customizing the Position Size Calculator Based on VP Money Management rules Indicator For MT4


Depending on your equity, you can customize the risk per cent and the take profit and stop-loss levels.



If you go to the indicator’s settings, you can change the ATR period which is by default set to 14. Increasing the period makes the ATR use more candlesticks/bars while calculating the ATR while lowering the period makes it use lesser candlesticks/bars. If you are a long term trader, you may consider making the ATR period larger while if you are a short term trader, you may make it smaller.

Next, you can alter the risk size percentage. The indicator uses this to calculate the amount of money that will be at risk depending on the risk percentage you want to use. The risk percentage is calculated from the equity of your account balance.

The risk size percentage is by default set to 1.0 but you may increase it if you have a larger account balance and large equity. However, if you have a small equity and account balance, you can leave it as it is or reduce it to a value of less than 1.0.

The risk size percentage helps you determine the lot size that you should use. A 1.0 risk size dictates that you can use a lot size of 1.0.

You can also change the stop loss level by changing the value of the ‘stop-loss as a factor of ATR’. By default, this value is set to 1.5 meaning it multiplies the value of ATR by 1.5 to use it in calculating where the stop loss should be placed.

The higher this factor is the larger the stop loss. Large stop loss may be advantageous in allowing your trade to stay in the market longer but it can be disadvantageous if the trade is closed at that large stop loss.

You can also change the take profit level by changing the ‘take profit as a factor of ATR’. By default this value is set to 1.0, meaning the indicator multiplies the value of the ATR by 1.0 to use the product in calculating where the take profit level should be.

The higher the take profit level the higher the anticipated profit. However, very high take profit may make you miss out since the market trend may change before the take profit is hit.

You can also change the font size of the text that the indicator displays. Also, you can change the colour of the text, which by default is set to magenta, depending on the background colour of your MT4 trading platform.

The base corner setting is used to change where you want the text to be displayed. 1 means on the top right corner. 2 means on the bottom left corner. 3 means on the bottom right corner and 4 means on the top left corner. Any other value greater than 4 makes the text to be displayed at the top left corner.


Position Size Calculator Based on VP Money Management rules Indicator For MT4 - Buy Entries


To place any trades using the Position Size Calculator Based on VP Money Management rules Indicator For MT4, you will have to combine it with a trend indicator of your choice.

In this guide, we shall use the Simple Moving Average (SMA) as our trend indicator.

So the SMA helps you identify when the market is bullish, which is when the indicator line moves below the candlesticks/bars (or the candlesticks/bars move above the indicator line).

After identifying the bullish trend, you should then go ahead and place your BUY order using the stop loss and take profit levels indicated by the Position Size Calculator Based on VP Money Management rules Indicator For MT4 for BUY.




Position Size Calculator Based on VP Money Management rules Indicator For MT4 - Sell Entries


The SMA helps you identify when the market is bearish, which is when the indicator line moves above the candlesticks/bars (or the candlesticks/bars move below the indicator line).

After identifying the bearish trend, you should then go ahead and place your SELL order using the stop loss and take profit levels indicated by the Position Size Calculator Based on VP Money Management rules Indicator For MT4 for SELL.




Position Size Calculator Based on VP Money Management rules Indicator For MT4 - Conclusion


It is very important to remember that the Position Size Calculator Based on VP Money Management rules Indicator For MT4 is not a trend indicator and therefore does not help you in identifying the market trend. to identify the market trend, you will have to combine the Position Size Calculator Based on VP Money Management rules Indicator For MT4 with a trend indicator of your choice.

Therefore the Position Size Calculator Based on VP Money Management rules Indicator For MT4 alone cannot be used to place trades.

This guide helps you understand how to use the Position Size Calculator Based on VP Money Management rules Indicator For MT4 effectively to make your forex trading experience great.

 

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