Brief Overview

Money Management determines how much capital your strategy allocates to each order, shaping both your potential profit and your potential loss. Depending on your trading style, you can choose between fixed-size positions, dynamic risk-based sizing, balance-linked scaling, or proportional sizing relative to your indicator provider. Each option offers a different level of automation and risk control, allowing your strategy to adapt to changing market conditions or maintain fixed exposure.

How to Use Money Management

Below you’ll find each sizing method explained clearly, step-by-step, with examples to help you understand how the system calculates order sizes.

1. Fixed Lots

This is the simplest model: every order uses the exact same lot size, independent of your current balance.

How it works

You set a fixed lot amount—for example, 0.20 lots. Every order uses this amount, regardless of account changes.

Example

• Balance: $10,000

• Pip value: $1

• Stop Loss: 30 pips

• Take Profit: 60 pips

• Lot size: 0.20

Loss at SL:

0.2 × $1 × 30 = $6

Win at TP:

0.2 × $1 × 60 = $12

If your balance is smaller (e.g., $1,000), pip value may drop to ~$0.10, so the win/loss scales proportionally.

Pip value reminder

Pip value depends on pair, account currency, and lot size.

For example:

For EURUSD at 1.1000

(0.0001 ÷ 1.1000) × 100,000 = $9.09 per pip for 1 lot.

2. Risk Percentage

This option sizes every trade based on how much of your balance you want to risk.

It automatically adjusts as your balance increases or decreases.

How it works

1. The system calculates your risk dollar amount (e.g., 2% of $10,000 = $200).

2. It divides that amount by the stop-loss cost in money.

3. The result is your lot size.

Example

• Balance: $10,000

• Risk: 2% → $200

• SL: 30 pips

• Pip value: $10

Lot size:

200 ÷ (30 × 10) = 0.67 lot

At 1% risk:

100 ÷ (30 × 10) = 0.33 lot

This ensures your risk per order remains consistent, regardless of your balance.

3. Ratio and Multiplier

This model adjusts your lot size based on your account balance relative to a capital factor (K).

How it works

Lot Size = (Your Balance ÷ K) × Fixed Lot Size

Example

• Balance: $10,000

• Capital Factor (K): 500

• Fixed Lot Size: 0.1

(10,000 ÷ 500) × 0.1 = 2 lots

This method automatically scales position size as your balance grows.

4. Provider × Percent (with Ratio Check Mode)

This option sizes your orders based on both your balance and the provider’s balance-to-lot ratio.

How it works

1. Compute the provider’s Ratio:

   Provider Balance ÷ Provider Lot Size

2. Compare your balance to that ratio.

3. Apply your percentage multiplier.

Example

• Provider balance: $1,000

• Provider lot: 0.5

• Ratio:

  1000 ÷ 0.5 = 2000

Your balance: $500

Your multiplier: 30%

Lot Size:

(500 ÷ 2000) × (30 ÷ 100) = 0.07 lot

This is ideal when your balance differs significantly from the provider’s.

5. Provider × Percent (without Ratio Check Mode)

This option skips the ratio calculation and directly applies your multiplier to the provider’s lot size.

Example

Provider lot: 0.5

Multiplier: 30%

0.5 ÷ 100 × 30 = 0.15 lot

Useful when you simply want a proportional fraction of the provider’s trade size.

Common Use-Cases

Fixed Lots

Use when you want predictable order sizes or for backtesting consistency.

Risk Percentage

The most robust method for consistent risk control and long-term equity protection.

Ratio & Multiplier

Best for automated account growth scaling.

Provider × Percent (with Ratio)

Useful when your balance differs from the provider’s and you want proportional exposure.

Provider × Percent (no Ratio)

Best for simple mirroring but with reduced or increased sizing.

FAQ

Does pip value stay constant?

No. It changes based on the pair, account currency, and lot size.

Which model is safest for long-term trading?

Risk Percentage—because it keeps risk per trade consistent.

Will lot size update automatically?

Yes—unless you select Fixed Lots.

What if my provider changes their lot size?

Both Provider × Percent modes automatically adjust.

Troubleshooting

Lot size seems too small

• Check your SL distance—large stops reduce lot size in Risk Mode.

• Verify your percentage settings.

• Review the provider ratio if using Ratio Mode.

Lot size seems too large

• Confirm you did not select Fixed Lots by mistake.

• Check the capital factor (K).

• Re-evaluate your multiplier percentage.

Pip value seems incorrect

• Remember: pip value varies by pair and account currency.

• Exotic pairs often have non-standard pip values.

Summary

Money Management gives you full control over how your strategy sizes positions. Whether you prefer fixed exposure, consistent risk-based sizing, automated balance scaling, or proportional mirroring of a provider, the system offers a flexible set of models tailored to different trading styles and goals.