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Lot size
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Author:  forex.rapheal [ Thu Nov 01, 2012 9:01 am ]
Post subject:  Lot size

Hi all,
Is anyone using the following formula to calculate the lot size? I would be appreciated if it can become an indicator or script.
The lot size calculation is based on:

AmountToRiskPerTrade = Account Size * PercentRisk

AmountToRiskPerTrade
MaxRiskPerPip = ----------------------------------
Our Stop Loss in Pips

MaxRiskPerPip
Lot Size = -----------------
ValuePerPipPerLot

where ValuePerPipPerLot is the value of each pip of price change, per full lot traded, to either make or lose money. This value is set by a broker for a standard lot size. Normally that is around $10/pip per full lot for a currency like the EURUSD.

Thank you for reading.
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