Lot Size & Risk Management Guide

📋 Overview

This section controls how the EA calculates lot sizes for each trade. You can choose between automatic lot sizing based on risk percentage, or fixed lot sizes.

⚙️ Settings Explained

1. Lot Size Calculation Mode

LotMode = AUTO_LOT | FIXED_LOTSIZE | LOT_BY_BALANCE

AUTO_LOT: EA automatically calculates lot size based on your risk percentage and Stop Loss distance.

  • ✅ Best for consistent risk management

  • ✅ Adapts to different Stop Loss sizes

  • ⚠️ Requires proper SL in signals

FIXED_LOTSIZE: Uses predetermined lot sizes regardless of risk.

  • ✅ Simple and predictable

  • ✅ Good for testing strategies

  • ⚠️ Risk varies with SL distance

LOT_BY_BALANCE: Scales lot size with account balance.

2. Basic Risk Settings

Balance

Balance = 1000  // Account balance for calculations

  • Set to 0 → EA uses your current MT4 account balance

  • Set to specific value → EA uses this for risk calculations

  • Useful for testing with virtual balance

MaxRiskPerTrade

MaxRiskPerTrade = 1  // Risk 1% per trade

  • Percentage of balance you're willing to risk per trade

  • Example: $10,000 balance × 1% = $100 risk per trade

  • Conservative: 0.5-1%

  • Moderate: 1-2%

  • Aggressive: 2-5%

LotDefault

LotDefault = 0.01  // Fixed lot size

  • Used when LotMode = FIXED_LOTSIZE

  • This is your default lot for all trades

3. TP Level Configuration

MaxTPLevel

MaxTPLevel = TP5  // Can be TP1, TP2, TP3, TP4, TP5

Sets the highest Take Profit level EA will use from signals.

Example:

  • Signal has: TP1, TP2, TP3, TP4, TP5

  • You set: MaxTPLevel = TP3

  • EA will only open orders for TP1, TP2, TP3

  • TP4 and TP5 are ignored

MaxOrdersPerSignal

MaxOrdersPerSignal = 1  // Max orders per signal

  • 1 = Open only 1 order per signal

  • 3 = Open up to 3 orders (for TP1, TP2, TP3)

  • 5 = Open 5 orders (one for each TP level)

numberOpenOrderConfig

numberOpenOrderConfig = NUMBER_BY_TP_SIGNAL | NUMBER_BY_CONFIG

NUMBER_BY_TP_SIGNAL: Opens orders based on TP levels in signal

  • Signal has TP1, TP2, TP3 → Opens 3 orders

NUMBER_BY_CONFIG: Opens orders based on MaxOrdersPerSignal

  • Even if signal has 5 TPs, opens only MaxOrdersPerSignal orders

4. Fixed Lot Per TP Level

Used when LotMode = FIXED_LOTSIZE

LotTP1 = 0.03  // 0.03 lot for TP1 order
LotTP2 = 0.02  // 0.02 lot for TP2 order
LotTP3 = 0.01  // 0.01 lot for TP3 order
LotTP4 = 0.01
LotTP5 = 0.01

Example Scenario:

  • Signal: EURUSD BUY with TP1, TP2, TP3

  • EA opens:

    • Order 1: 0.03 lot → TP1

    • Order 2: 0.02 lot → TP2

    • Order 3: 0.01 lot → TP3

  • Total exposure: 0.06 lot

5. Auto Lot Risk Per TP Level

Used when LotMode = AUTO_LOT

RiskPerTradeTP1 = 1  // Risk 1% for TP1
RiskPerTradeTP2 = 1  // Risk 1% for TP2
RiskPerTradeTP3 = 1  // Risk 1% for TP3
RiskPerTradeTP4 = 1
RiskPerTradeTP5 = 1

How it works:

For each TP level, EA calculates:

Lot Size = (Balance × Risk%) / (SL Distance in $ per lot)

Example:

  • Balance: $10,000

  • Risk per TP: 1%

  • SL Distance: 50 pips

  • Pip Value: $10/lot for EURUSD

Calculation for TP1:

Risk Amount = $10,000 × 1% = $100
SL Value = 50 pips × $10 = $500 per lot
Lot Size = $100 / $500 = 0.20 lot

6. AllowPendingForDualEntry

AllowPendingForDualEntry = true

When signal has 2 entry prices:

  • true: Opens 1 market order at current price + 1 pending order at 2nd entry

  • false: Opens only 1 market order, ignores 2nd entry

📊 Configuration Examples

Example 1: Conservative Trader

LotMode = AUTO_LOT
Balance = 0  // Use current balance
MaxRiskPerTrade = 0.5  // Risk only 0.5%
MaxTPLevel = TP3
MaxOrdersPerSignal = 3
RiskPerTradeTP1 = 0.5
RiskPerTradeTP2 = 0.3
RiskPerTradeTP3 = 0.2

Result: Very low risk, takes profit at 3 levels with decreasing risk allocation.

Example 2: Aggressive Trader

LotMode = AUTO_LOT
Balance = 0
MaxRiskPerTrade = 2  // Risk 2% per trade
MaxTPLevel = TP5
MaxOrdersPerSignal = 5
RiskPerTradeTP1 = 2
RiskPerTradeTP2 = 1.5
RiskPerTradeTP3 = 1
RiskPerTradeTP4 = 0.5
RiskPerTradeTP5 = 0.5

Result: Higher risk, takes all 5 TP levels with front-loaded risk.

Example 3: Fixed Lot Scalper

LotMode = FIXED_LOTSIZE
LotDefault = 0.10
MaxTPLevel = TP1
MaxOrdersPerSignal = 1
LotTP1 = 0.10

Result: Simple setup, 0.10 lot per trade, only TP1.

Example 4: Balanced Pyramiding

LotMode = FIXED_LOTSIZE
MaxTPLevel = TP3
MaxOrdersPerSignal = 3
LotTP1 = 0.05  // Largest position
LotTP2 = 0.03  // Medium
LotTP3 = 0.02  // Smallest

Result: Classic pyramiding - larger position at closer TP, smaller at distant TP.

Example 5: Equal Risk Distribution

LotMode = AUTO_LOT
Balance = 0
MaxRiskPerTrade = 1.5
MaxTPLevel = TP4
MaxOrdersPerSignal = 4
RiskPerTradeTP1 = 1.5
RiskPerTradeTP2 = 1.5
RiskPerTradeTP3 = 1.5
RiskPerTradeTP4 = 1.5

Result: Each TP level has equal 1.5% risk.

⚠️ Important Notes

Risk Calculation Formula

When using AUTO_LOT:

Lot = (Balance × Risk%) / (SL in pips × Pip Value)

Key factors:

  1. Balance: Higher balance → larger lots

  2. Risk%: Higher % → larger lots

  3. SL Distance: Larger SL → smaller lots (to maintain risk)

  4. Pip Value: Varies by instrument (EURUSD ≠ XAUUSD)

Common Mistakes to Avoid

❌ Setting MaxRiskPerTrade = 0 with AUTO_LOT

  • EA will fail to initialize

  • Must be > 0

❌ Total risk > account balance

  • Example: 5 orders × 2% each = 10% total risk

  • With losing streak, can blow account quickly

❌ Not considering correlation

  • Opening EURUSD, GBPUSD, AUDUSD at once

  • All may move together = multiplied risk

❌ Using AUTO_LOT without SL

  • EA cannot calculate lot size

  • Will skip order or use default

💡 Best Practices

✅ 1. Start Conservative

MaxRiskPerTrade = 0.5-1%
Total risk per signal (all TPs) < 3%

✅ 2. Decrease Risk for Higher TPs

RiskPerTradeTP1 = 1.0  // Close TP = higher confidence
RiskPerTradeTP2 = 0.7  // Medium TP
RiskPerTradeTP3 = 0.5  // Distant TP = lower confidence

✅ 3. Test on Demo First

  • Run for 1-2 weeks

  • Verify lot sizes are reasonable

  • Check total exposure

✅ 4. Monitor Drawdown

  • Max drawdown should be < 20%

  • If exceeds, reduce risk%

✅ 5. Account for Leverage

  • Higher leverage ≠ higher profit

  • Use proper risk% regardless of leverage

🎯 Quick Start Recommendations

Small Account ($500-$2000)

LotMode = AUTO_LOT
Balance = 0
MaxRiskPerTrade = 1
MaxTPLevel = TP2
MaxOrdersPerSignal = 2
RiskPerTradeTP1 = 1
RiskPerTradeTP2 = 0.5

Medium Account ($2000-$10000)

LotMode = AUTO_LOT
Balance = 0
MaxRiskPerTrade = 1
MaxTPLevel = TP3
MaxOrdersPerSignal = 3
RiskPerTradeTP1 = 1
RiskPerTradeTP2 = 0.8
RiskPerTradeTP3 = 0.5

Large Account ($10000+)

LotMode = AUTO_LOT
Balance = 0
MaxRiskPerTrade = 0.5-1
MaxTPLevel = TP4
MaxOrdersPerSignal = 4
RiskPerTradeTP1 = 1
RiskPerTradeTP2 = 0.8
RiskPerTradeTP3 = 0.6
RiskPerTradeTP4 = 0.4

📞 Support

If you have questions about lot sizing:

  1. Check your EA logs for lot calculation details

  2. Test on demo account first

  3. Contact support with specific scenarios

Remember: Good risk management = Long-term success! 🚀

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