FOREX QUANT

June 14, 2007

Fwd: Preventing over-leveraging (Was: IBFX problems)

Filed under: Uncategorized — by TraderMade @ 1:25 am
Tags: , , , , ,

———- Forwarded message ———-
From: Darma
Date: Jun 14, 2007 8:26 AM
Subject: Preventing over-leveraging (Was: IBFX problems)
To: MetaTrader_Experts_and_Indicators@yahoogroups.com
Cc: indotraders@yahoogroups.com

Regarding preventing over leveraging the account, i have these lines on my EAs :

// Money Management
if (prm_mm_enabled) {
volume = NormalizeDouble((AccountBalance()*prm_gearing_ratio)
/(prm_pair_diversify*MarketInfo(Symbol(),MODE_LOTSIZE)),
prm_lot_resolution);
} else {
volume = prm_mm_fixed_volume;
}
if (volume > MarketInfo(Symbol(), MODE_MAXLOT)) {
volume = MarketInfo(Symbol(), MODE_MAXLOT);
} else if (volume < MarketInfo(Symbol(), MODE_MINLOT)) {
volume = MarketInfo(Symbol(), MODE_MINLOT);
}

i use prm_gearing_ratio = 5 to 6. 10 is the most agressive number for me.
prm_pair_diversify needs to be input externally by me since i havent found a way for the EA to detect by itself how many pairs it is trading in a single account at a particular moment.
Does anyone has any idea on this?

Rgrds,
Darma

On 6/13/07, accrete <yahoogrp01@accrete.com > wrote:

I agree on not overleveraging the account. I know that (as mentioned and hoped for by another member) the idea Bluto stated he would incorporate in a future version is that of telling the EA just how much of the account it was allowed to trade. This would add a measure of safety also.

: ) Thom

—– Original Message —–
From: Sam

One thing to avoid is overleverage. I believe it’s best to leverage only around 10-20% of the account. Usually when we overleverage we want to be stringing on SL thereby prone to SL hunting as well as margin call danger. Forex is full of suprises. The goal is to be able to survive long term.

__._,_.___

For archives of Experts and Indicators from the MetaTrader Experts and Indicators Group
See http://www.forexmt4.com/ or http://www.lightpatch.com/forex

(*)

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