risk settings

[zaff]

Hi i wanted to ask why when i put a risk % of 3 on the frp settings appears different on the hud text on the chart?

i have 3% but it appears as 3.7% - 3.9% 3.0%.

[Support_AdrianS]

Dear Zaff,

The risk is automatically calculated and rounded to the minimum lot permitted by the broker.
The chart will not always show the risk setting, but will show the real risk, after rounding with the minimum lot or lot step permitted by the broker.
The risk from chart will show the real risk even if the money management is set to false and manual lot sizing is used.
There is no error, only real risk after rounding by Minlot or Lotstep.

Kind regards,
Adrian.
ForexRealProfitEA Team

[zaff]

ok but i don't quite get it. it is ranging form 3.9 to 2.0 depending on the pairs.

so i must modify the risk on the settings slot in order to get real 3% ?. i'm not comfortable risking more than that.

[Support_AdrianS]

Dear Zaff,

The risk and lot size calculated by Money Management heavily depends by the currency used and minimum lot and lot step permitted by the broker.

For example, 1 pip (using 0.1 standard lots or 1 minilot) equals 1 usd for eurusd pair and 1.53 usd for eurgbp pair for a usd based account (at the present rate).

The problem is that your account could be too small for the minimum lot and lot step permitted by the broker and the rounding gives a big difference between your risk setting and the real risk actually used for each currency.

Even if you set the Money Management on "false" and manually set the lot size, you will get the same results after the rounding.
As I said before, the risk from chart will show the real risk even if the money management is set to false and manual lot sizing is used; there is no error, only real risk after rounding by Minlot or Lotstep permitted by the broker.

You should use the robot (FRPEAv6.xx) on a:
- Minimum 500 usd account (with Minlot = 0.01 and Lotstep = 0.01) to be able to use the default setting.
- Minimum 5000 usd account (with Minlot = 0.1 and Lotstep = 0.01) to be able to use the default setting.

You can solve this problem by increasing your account size or change the broker.
However, you can use a higher risk (if you feel comfortable with), the risk that we are using is small anyways and the MaxDD is 22% for the default settings on the last 6 years of tickdata backtesting for all 12 currencies and all strategies used combined.

Money Management and lot calculation is a bit complicated and depends on the currency used, minimum lot size and lot step permitted by the broker and account currency base, so I hope that my explanation was helpful.

Kind regards,
Adrian.
ForexRealProfitEA Team

[zaff]

hmmm i'm using pepperstone the min lot is 0.01 and i'm trading an account funded with USD 800. it should be enough to run default right?

[Support_AdrianS]

Dear Zaff,

That is enough to run the default settings.
It's somewhere at the middle, more than the minimum required for the default settings and not double, to use the next step of 0.02 lots.
Maybe the robot calculates different lots, 0.01 lots for the currencies with a higher value per pip and 0.02 lots for the currencies with a lower value per pip.

I want to add something regarding the 3% default risk.
There are a lot of strategies and currencies that uses different StopLoss values. For example, Strategy 1 on gbpusd uses a 50 pips StopLoss while some other strategies (2 and 4) uses 150 pips StopLoss, but in very few cases the StopLoss is actually 150 pips. The strategies and currencies that use the 150 pips StopLoss are the following:
Audusd – Strategy 4, eurusd – Strategy2, gbpchf – Strategy 2 and gbpusd – Strategy 2.
In addition, most of the losing trades close on a lower loss than the StopLoss value.
Technically it was very complicated and ineffective to calculate the risk for each SL value for each pair and strategy separately.
The 3% risk is calculated at a 150 pips for all currencies and strategies used.
So, only if the robot hit the StopLoss in the 4 situations mentioned above, you will actually lose 3% from the account and most of the time the StopLoss value is less than 3%.


Kind regards,
Adrian.
ForexRealProfitEA Team

[zaff]

i'm only using strategies 1 and 2 as per your recommendation excluding eurusd and other that i can't recall now. so do this behevior is normal ? does it look like that on your charts ? i just want to know how to handle this, as im planning to have several bots on the same account so the risk per bot must be precise to keep a balance between them.

[Support_AdrianS]

Dear Zaff,

You can set the Money Management to "false" and set the Lots to your preferred value.
The chart will show you the real risk (even for manual lot sizing) and if it exceeds the 3% limit, just lower the Lots with 0.01.

Our robot was specially conceived to be used with other Expert Advisors and we have some recommendations in this case:

If you are using other trading systems on that account, it will be a good idea to install a new MT4 platform in a different folder for the same account and use only FRPEA on that MT4 platform.

We recommend you to set the "Max bars in history" to 5000 and "Max bars in chart" to 5000 also for the MT4 platform with FRPEA installed.

If you are using Windows 7 it's best to run the MT4 platform using administrative rights (right click on "terminal.exe" and click on "run as administrator").

Try to combine the backtests results from our robot and others that you want to use on the same excel file and see how they work together (see the MaxDD for all robots used combined).

Diversification is the safest method of investment and if all currencies and all strategies used are profitable in the long term, used together will generate a constant gain and a moderate draw down.

Kind regards,
Adrian.
ForexRealProfitEA Team