Traders are always looking for trading tools that will make their trading easy. While numerous technical indicators provide buy and sell signals, only a few help you size positions, money management, and manage risk. Risk management includes determining the maximum potential loss. This way, you avoid taking too much risk on your trading capital and ruining your account. While you can manually calculate your ideal trading position size, sometimes you must execute a trade faster, especially when scalping. This is where the free download Money Management for MT5 comes in handy.
It calculates the ideal position size based on your account balance, risk tolerance, currency pair, and other information on the MT5 platform. Then, he sets the ideal stop-loss level. You don’t need to go back to charts to perform calculations.
You can see the stop loss, position size, and other information on the bar at the top left of the trading charts. The indicator can be used when trading all instruments and currency pairs.
How to Use The Pip Calculator Indicator for MT5
Using the indicator is quite simple. Start by downloading the indicator for free on our website. Just run the indicator, and voila!
It automatically calculates the value of ATR and Stop-Loss. It is also the risk percentage, stop loss level, and position size for your balance. This means that you see the amount that you risk losing if the trade does not go according to your scenario. By default, the indicator sets the risk at 1%. However, you can change your risk tolerance and position size. If your risk appetite is 2%, change the risk percentage or risk amount (the amount of money you are willing to risk).
Real Trade Example
The chart shows the movement of the price of AUD against JPY. The bar shows the risk money and position size at the bottom left of the price chart. For example, the position size on this demo account is 0.82 lots. The risk money is $50 of the $5,000 account balance, 1% of the total account balance.
The indicator has set a stop loss below the entry-level, which indicates a buy signal. The entry-level is 93.567, and the stop loss is 93.399, which means a risk tolerance of 168 points.
You only need to fill in this information, and you are done. You can use the 1:3 risk reward to set your take profit level. Using a trailing stop can help you lock in more profits.
The money management indicator takes your trading to the next level by adding risk management to your strategy. It determines the appropriate position size and stop loss level. This way, you trade safely and avoid losing your account. This helps to avoid over-trading, especially for beginner traders. Auto position sizing helps you trade efficiently and quickly without risking your account. This is a technical tool that you must have.