Account Free Margin Protection (AFMP) setting

[lkm020]

Hi guys,

This sounds like an interesting parameter which I have overlooked until considering how I could prevent Megadroid from opening a position at the same time as FRP.
Am I right in assuming that if I set AFMP to 97%, then FRP will not open a position if another EA is using 3% or more of the account balance for margin? For this to work, does it matter what the MM option is set to (1 account balance, or 3 (free margin)? I am assuming it does not matter.
Say for example we have a $10,000 account. Megadroid opens a 0.3 lot position, assuming a 100:1 leverage. So the margin used will be $300, leaving 97% free margin. Then FRP wants to open a position, would it open?

Rgds
Kevin

[Support_AdrianS]

Dear Kevin,

No, if you set AFMP to 97, this parameter prevents new positions to be open if, by doing so, more than 97% of the free margin is being used.

Example given:
Account balance = 1000 USD
Free margin = 410 USD
If AFMP = 60%, next trading signal uses 50 USD margin, resulting into a 410-50=360 USD free margin remaining, which is less than 40% free margin so this position will not be open.

It does not matter if the MM option is set to 1 (account balance) or 3 (free margin).

You can set NFA to true and FRP will not open any trade in the opposite direction of an already opened position.

ForexRealProfitEA doesn’t do hedging, but if you use multiple expert advisors on the same account and the broker doesn’t allow hedging, then when NFA is set to “true”, ForexRealProfitEA doesn’t open positions that are in hedging situation even though it has a trading signal.
When NFA is set to “false” (default), ForexRealProfitEA can come in a hedging situation with other expert advisors installed on the same account.

Kind regards,
Adrian.
ForexRealProfitEA Team

[lkm020]

Adrian,

OK, so it sounds like AFMP is the opposite of what I thought it was.
So, if I set AFMP to 3%, then FRP will not open a position if another EA is using 3% or more of the account balance for margin?

The example you give (which is the same one from the manual), is unclear.
If the account balance is $1000, and the free margin is $410, then we have 41% free margin and 59% used margin.
If a new position is being considered, requiring $50 of margin (ie another 5%) then this would result in 36% free margin and 64% used margin, so FRP would not open the position.
So it seems AFMP setting is referring to the maximimum % of the account balance that can be used for margin (ie USED margin) right?

This might sound pedantic, but the reason I need to make it clear is as follows. Free margin is the amount of the available balance that has not been set aside as deposit /collateral for current open positions. If AFMP was the max % of free margin that could be used for a new position (as described in the manual), then it would always open a position, but each new position would be smaller than the last one.

Rgds
Kevin

[Support_AdrianS]

Dear Kevin,

If you set AFMP to 3%, then FRP will not open a trade if, by doing so, more than 3% of the free margin is being used (with the trade that will be open included).

The default value is 75% because at 50:1 Leverage, even if Stop Loss is reached for all seven recommended currencies in the same time (hypothetical), you will still avoid the Margin Call. This way all recommended currencies have room to trade within the 100 pips Stop Loss value.

Some brokers (like Dukascopy) do not let you exceed 50% of used margin.

Of course, it's a way to protect your account also.

This parameter has no connection with the use of other robots.

Only if Money Management is set on true and MM_Option is set on 3 (calculates the risk according to Account Free Margin) then each new position would be smaller than the last one. This has nothing to do with AFMP.

Kind regards,
Adrian.
ForexRealProfitEA Team