Automatically Calculate Trade Lot Size By Percent Risk in Forex Tester
Backtesting is one of the best ways to test a discretionary trading strategy. It is also a fantastic way to practice your trading strategy and keep your skills sharp.
Forex Tester is the best way that I know of to manually backtest.
But if I had to choose one major shortcoming in Forex Tester, it is the lack of an automatic lot size calculator.
You see, most traders that I know use fixed fractional risk. I usually don’t risk more than 1% per trade.
But there hasn’t been an easy way to automatically calculate lot size based on percent risk…
Bracket Bar Entry
A common entry method is to place a stop loss below/above the current bar and an entry order on the opposite side.
For example, if you think that this is a good place to go long, you would put your stop loss below the current bar and an entry buy stop above the current bar.
This script makes it super easy to enter trades in this way. Setup the script, then simply hit the shortcut key on your keyboard. No more setting the stop loss and pending entry manually. The script does everything for you.
You can also setup a predetermined buffer between the candle and the entry level.
If you don’t trade in this way, then you can simply use the Standard Entry method mentioned in the previous section.
Risk Multiple Profit Target
This script also makes it easy for you to set fixed R profit targets. If you don’t need this feature, then you don’t have to take advantage of it.
But if you do use fixed risk multiple profit targets, this feature will literally cut your order entry time in half.
Here’s what an automatic 5R profit target would look like.
This can also be a quick way to test different profit target levels, based on R multiple. For example, a 2R profit target might work well for you right now. But you may find that a 4R profit target improves your results dramatically.
You will never know unless you test it.
Luckily, this script makes it easy.
Frequently Asked Questions
Click the “+” symbol to see the answer to each question.