- How to correctly calculate Take Profit of a transaction;
- TP calculator online;
- How to correctly calculate Stop Loss of the transaction;
- SL calculator online;
- How to calculate the volume of investments (including crypto exchanges);
- Online Transaction Volume Calculator;
- How to calculate the volume in lots (MetaTrader 4 or 5);
- Lot calculator online.
How to correctly calculate Take Profit of a transaction
In order to determine the value of take profit, you need to know the following things:
- Stop Loss;
- Opening price;
- percentage of closing transactions for a take profit or stop loss strategy.
Consider an example. Our EURUSD or Bitcoin strategy has 70% of loss-making and, accordingly, 30% of profitable transactions. Then, for a positive mathematical expectation, a simple inequality must be satisfied, the amount of losses is less than profit. It is important to understand that changing the ratio of TP to SL, the percentage of losing trades will change. In this case, there is no difference in points or in monetary terms. We obtain the inequality:
0,7×Loss < 0,3×Profit
This means that the profit per transaction should be more than the loss of 2.33 times. Consider the spread, slippage, swaps and save money on Lamborghini and get 2.5. If you do not know the percentage of losing trades, accept a value of at least 75%.
Take profit calculator online
|Percentage of losing trades (%)|
How to correctly calculate Stop Loss of the transaction
If you trade on a cryptocurrency exchange or in a terminal that does not use lots, then use the calculator below. Select the type of order from the drop-down menu: SELL / BUY. Amount of investment, for example $ 500. Leverage, if you use margin trading, if it is not there, then simply 1. The amount of the maximum allowable loss in the investment currency is the money that you lose when triggering stop loss. Price – price at the moment of position opening.
Stop Loss calculator online
|Type of transaction SELL/BUY|
|Amount of maximum allowable loss|
How to calculate the volume of investments (including crypto exchanges)
Enter the amount of the maximum allowable loss - the money that is lost when the Stop Loss is triggered. Then, Leverage for margin trading, if not using, then 1. Current price of the asset, loss limit (Stop Loss) according to the strategy or estimated exit price of the transaction. The simple formula looks like:
The amount of investment = (Loss amount) / (Leverage × | 1- (Stop loss) / Price |)
Online Transaction Volume Calculator
|Amount of maximum allowable loss|
How to calculate the volume in lots (MetaTrader 4 or 5);
To do this, determine the amount of the maximum allowable loss. It can be entered immediately or calculated through two cells: “Deposit” and “Risk on the Deposit Amount (%).” One of the preferred options is required. Select the currency of the deposit (account) in the drop-down box, or enter by hand. Next, select the point size in the quote currency, for example, for EUR / USD 0.00001, for oil BRN 0.01. Find out the size of the standard Lot, the information is in the specification of the asset or on the broker's website (for currency pairs 1 Lot = 100 000, for American stocks 1 Lot = 1000). The base currency of the quote is in the specification of the asset; for currency pairs, it is a “divider” pair. (EURUSD - USD, EURJPY - JPY, etc.). For US stocks - USD, for Russian RUB, European - EUR, etc. As a result of the information entered in the “Exchange Rate” cell, a quote appears that you need to enter. For example, your deposit is in USD, and you buy BMW shares - EUR. Then in the cell the exchange rate is required to enter EUR / USD. Be careful with this cell. The last cells Price and Stop Loss I think will not be difficult.
Lot calculator online
|Risk of deposit amount (%)||Amount of maximum allowable loss|
|Point size in quote currency (number of characters after the point)||The size of a standard Lot, see in the specification of the asset (currency - 100 000)|
|For the base currency of quotes, see the specification of the asset (EURUSD - USD, EURJPY - JPY)||Exchange rate " Base Currency Quotes " to "Deposit Currency"|