Copy our Robots – Calculate trade size base on equity

What should be my trade size per order?

Copy our robot 3 months performance

Trade size is a function of equity and risk – how much in your account and how much risk you like to take up. 

The image above is a less than 3 months gain of Copy our Robot – an intelligent trade copier. Till date, gain is 4.9% for less than 3 months. This is nothing to shout about (but it’s definitely better than fixed deposit).

Oh wait, look carefully, the account equity is $5000 yet lot size for each order is 0.02 only (2 micro lots). This is not using equity efficiently. The lot size of 0.02 is too small for a $5000 equity. 

Margin utilisation as a consideration for trade size

Another consideration for lot size is to look at how much margin you want to utilise. The higher utilisation results in faster gain but higher risk. 

Assuming an equity of $5000, a margin utilisation of 20% mean that at any time, margin used is $1000. Your account still have $4000 to withstand any possible drawdown. 

There is no good gauge of what is a good percentage of margin utilisation, it depends on individual risk profile. Generally, a 10% -20% utilisation is considered reasonable. 

Guide on trade size

Here’s an estimate on trade size base on my own preference. It is for your reference only. I assumed that there will be maximum 10 orders at any time. 

Equity (USD) Margin Utilisation Trade size per order
$1000 10% 0.01 (1 micros)
$5000 10% 0.05 (5 micros)
$25,000 10% 0.25 (2.5 minis)
Equity (USD) Margin Utilisation Trade size per order
$1000 20% 0.02 (2 micros)
$5000 20% 0.1 (1 mini)
$25,000 20% 0.5 (5 minis)

What will be my gain then?

Gain is calculated from profit and equity. 

Let’s take a look at Copy our Robot performance with a profit of $245 in less than 3 months. 

Copy our robot 3 months performance
Copy our robot 3 months performance 24.5%

Assuming a margin utilisation of 20%, the traded size should be 0.1 (1 mini lot). 

Thus gain in dollar will be approximately $245*5 = $1225. 

The return on equity could be 1225/5000 = 24.5% gain in less than 3 months

Then why is it that Copy our Robot is trading such a small size? Are you not confident? No, definitely not. This is because we want to prevent any costly mistake when users are setting up for the first time. User can increase their trade size via a lot multiplier in our copier. 

What is Copy our Robot?

Copy our robota trade copier software that is loaded with existing robots from onlineforexmaster.  With a sophisticated selection criteria, our team will evaluate which to deploy robots in, while robots execute and manage trades in a 100% rule-based manner. This is best of both world – human decision, robot management.

With a single copier file, you are able to copy notifications or our trades executed by robots. This will save much hassles of loading robots into tons of charts – it’s technically challenging.  As user, you retain 100% control – choose what to copy, when to copy and when to stop.

A simulation of copy our robot performance assuming an equity of $25,000 with our actual gain.

1 Aug 2018

Starting Balance

$25,000 trading 0.5 (5 mini lot each order). Margin utilisation 20%.

1 Aug 2018
7 Oct 2018

Profit $6125, Gain 24.5%

Account balance is $31125 till date, with a huge leap of 24.5% gain on equity. 

7 Oct 2018
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Binni Ong
Binni Ong

Forex Data Scientist & Systems Expert, entreprenuer and a mother of two wonderful children. Binni Ong just loves patterns/numbers and developed many mathematical-base automated trading systems. She founded TerraSeeds Market Technician Pte Ltd She was also invited by exchanges, brokerages and banks to speak in many investment seminars and panels. She has a Masters degree from NTU, Singapore.   Follow Binni in Twitter | Why Students like Master Forex Course | Trade Review on Tflow® Trades & Trade Performances| Find me on Google+

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