Position Size Calculator Indicator MT4 | MT5

The Position Size Calculator is one of the important MetaTrader indicators, which is defined as a risk-management indicator more than a technical analysis indicator, that allows traders to determine the ideal size for any trade and the exact amount of points to set stop-loss price, ensuring proper risk management.

Additionally, it helps them avoid over-leveraging and maintain consistency in their trading strategy.

For optimal use, traders should follow these steps :

• Set your Risk-Percentage Parmeter: 

- Choose the percentage of your balance you want to risk per trade (example: 1% or 2%)

• Execute the trade: 

- Use the recommended lot size when placing your trade (buy or sell)

- Set your stop-loss according to the calculations, whether based on the risk taken (1% or 2% or...) or on the ATR.

• Monitor and adjust if needed:

- If market conditions change, adjust your stop-loss and recalculate the lot size as necessary.

Having a solid risk management strategy can make a trader more profitable than others. By following these steps, traders can prevent excessive losses while maintaining control over their risk management.

1/ In the AUDCAD trading example on the MetaTrader 4 chart, after applying the Position Size Calculator (PSC) indicator, I selected a 1% risk on a 1000$ account balance. The indicator then calculated the lot size as 0.11 lots, with a risk of 131 points (10 points = 1 pip) at the 1% risk level and 87 points based on the ATR(14). 

For risk management, I set the stop-loss points for both scenarios. If I decide to enter a long position, I will place the stop loss at the green-marked points. Alternatively, if I choose to enter a short position, the stop loss will be placed at the red-marked points. 

2/ In the CADJPY trading example on the MetaTrader 5 chart, after applying the PSC indicator, I chose a 2% risk on a 3500$ account balance. The indicator then calculated the size as 1.82 lots, with a risk of 575 points at the 2% risk level and 383 points based on the TR(14).

For risk management, I set he stop-loss points for both cases. If I decide to enter a long position, I will place the stop loss at the green-marked points. Conversely, if I choose to enter short, the stop loss will be placed at the red-marked points.