Hi folks,
One of the most important keys (if not the most important one) of success trading is the Money Management technique you apply to your trading operations.
The Money Management is how to handle the money you put in one or more trades, where you put more money in the good trades and put less money in the bad trades. And at the same time how to handle the capital you using in your trading account where you spend more when you have more balance and spend less when you have less balance.
The most of traders think first in when to buy/sell but the successful ones think first how manage the risk before buying/selling
The Money Management briefly is the art of handling the size of the trade
Because we are in the development section we are taking another approach of talking about the Money Management, we are going to talk about a MQL4 code which enable us to apply our Money Managements and Risk controller techniques in the case of writing an expert advisor.
We have a simple here in MQL4.
//+------------------------------------------------------------------+
//| EMA_CROSS_2.mq4 |
//| Coders Guru |
//| http://www.forex-tsd.com |
//+------------------------------------------------------------------+
#property copyright "Coders Guru"
#property link "http://www.forex-tsd.com"
#define MAGICMA 20060306
//---- Trades limits
extern double TakeProfit=180;
extern double TrailingStop=30;
extern double StopLoss=70;
extern bool UseStopLoss = false;
extern double HedgingTakeProfit=20;
extern double HedgingStopLoss=10;
extern bool UseHedging = true;
extern bool ContinuesHedging = true;
//---- EMAs paris
extern int ShortEma = 10;
extern int LongEma = 80;
//---- Crossing options
extern bool ImmediateTrade = true; //Open trades immediately or wait for cross.
extern bool CounterTrend = true; //Use the originally CounterTrend crossing method or not
//---- Money Management
extern double Lots = 1;
extern bool UseMoneyManagement = true; //Use Money Management or not
extern bool AccountIsMicro = false; //Use Micro-Account or not
extern int Risk = 10; //10%
//---- Time Management
extern bool UseHourTrade = false;
extern int FromHourTrade = 8;
extern int ToHourTrade = 18;
extern bool Show_Settings = true;
extern bool Summarized = false;
extern double slippage = 3;
//+------------------------------------------------------------------+
//| expert initialization function |
//+------------------------------------------------------------------+
int init()
{
//----
if(Show_Settings && Summarized == false) Print_Details();
else if(Show_Settings && Summarized) Print_Details_Summarized();
else Comment("");
//----
return(0);
}
//+------------------------------------------------------------------+
//| expert deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
//----
return(0);
}
bool isNewSumbol(string current_symbol)
{
//loop through all the opened order and compare the symbols
int total = OrdersTotal();
for(int cnt = 0 ; cnt < total ; cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
string selected_symbol = OrderSymbol();
if (current_symbol == selected_symbol)
return (False);
}
return (True);
}
int Crossed()
{
double EmaLongPrevious = iMA(NULL,0,LongEma,0,MODE_EMA, PRICE_CLOSE, 1);
double EmaLongCurrent = iMA(NULL,0,LongEma,0,MODE_EMA, PRICE_CLOSE, 0);
double EmaShortPrevious = iMA(NULL,0,ShortEma,0,MODE_EMA, PRICE_CLOSE, 1);
double EmaShortCurrent = iMA(NULL,0,ShortEma,0,MODE_EMA, PRICE_CLOSE, 0);
if(ImmediateTrade)
{
if (EmaShortCurrent<EmaLongCurrent)return (1); //down trend
if (EmaShortCurrent>EmaLongCurrent)return (2); //up trend
}
if (EmaShortPrevious>EmaLongPrevious && EmaShortCurrent<EmaLongCurrent ) return (1); //down trend
if (EmaShortPrevious<EmaLongPrevious && EmaShortCurrent>EmaLongCurrent ) return (2); //up trend
return (0); //elsewhere
}
//--- Bassed on Alex idea! More ideas are coming
double LotSize()
{
double lotMM = MathCeil(AccountFreeMargin() * Risk / 1000) / 100;
if(AccountIsMicro==false) //normal account
{
if (lotMM < 0.1) lotMM = Lots;
if ((lotMM > 0.5) && (lotMM < 1)) lotMM=0.5; //Thanks cucurucu
if (lotMM > 1.0) lotMM = MathCeil(lotMM);
if (lotMM > 100) lotMM = 100;
}
else //micro account
{
if (lotMM < 0.01) lotMM = Lots;
if (lotMM > 1.0) lotMM = MathCeil(lotMM);
if (lotMM > 100) lotMM = 100;
}
return (lotMM);
}
string BoolToStr ( bool value)
{
if(value) return ("True");
else return ("False");
}
void Print_Details()
{
string sComment = "";
string sp = "----------------------------------------\n";
string NL = "\n";
sComment = sp;
sComment = sComment + "TakeProfit=" + DoubleToStr(TakeProfit,0) + " | ";
sComment = sComment + "TrailingStop=" + DoubleToStr(TrailingStop,0) + " | ";
sComment = sComment + "StopLoss=" + DoubleToStr(StopLoss,0) + " | ";
sComment = sComment + "UseStopLoss=" + BoolToStr(UseStopLoss) + NL;
sComment = sComment + sp;
sComment = sComment + "ImmediateTrade=" + BoolToStr(ImmediateTrade) + " | ";
sComment = sComment + "CounterTrend=" + BoolToStr(CounterTrend) + " | " ;
if(UseHourTrade)
{
sComment = sComment + "UseHourTrade=" + BoolToStr(UseHourTrade) + " | ";
sComment = sComment + "FromHourTrade=" + DoubleToStr(FromHourTrade,0) + " | ";
sComment = sComment + "ToHourTrade=" + DoubleToStr(ToHourTrade,0) + NL;
}
else
{
sComment = sComment + "UseHourTrade=" + BoolToStr(UseHourTrade) + NL;
}
sComment = sComment + sp;
sComment = sComment + "Lots=" + DoubleToStr(Lots,0) + " | ";
sComment = sComment + "UseMoneyManagement=" + BoolToStr(UseMoneyManagement) + " | ";
sComment = sComment + "AccountIsMicro=" + BoolToStr(AccountIsMicro) + " | ";
sComment = sComment + "Risk=" + DoubleToStr(Risk,0) + "%" + NL;
sComment = sComment + sp;
Comment(sComment);
}
void Print_Details_Summarized()
{
string sComment = "";
string sp = "----------------------------------------\n";
string NL = "\n";
sComment = sp;
sComment = sComment + "TF=" + DoubleToStr(TakeProfit,0) + " | ";
sComment = sComment + "TS=" + DoubleToStr(TrailingStop,0) + " | ";
sComment = sComment + "SL=" + DoubleToStr(StopLoss,0) + " | ";
sComment = sComment + "USL=" + BoolToStr(UseStopLoss) + NL;
sComment = sComment + sp;
sComment = sComment + "IT=" + BoolToStr(ImmediateTrade) + " | ";
sComment = sComment + "CT=" + BoolToStr(CounterTrend) + " | " ;
if(UseHourTrade)
{
sComment = sComment + "UHT=" + BoolToStr(UseHourTrade) + " | ";
sComment = sComment + "FHT=" + DoubleToStr(FromHourTrade,0) + " | ";
sComment = sComment + "THT=" + DoubleToStr(ToHourTrade,0) + NL;
}
else
{
sComment = sComment + "UHT=" + BoolToStr(UseHourTrade) + NL;
}
sComment = sComment + sp;
sComment = sComment + "L=" + DoubleToStr(Lots,0) + " | ";
sComment = sComment + "MM=" + BoolToStr(UseMoneyManagement) + " | ";
sComment = sComment + "AIM=" + BoolToStr(AccountIsMicro) + " | ";
sComment = sComment + "R=" + DoubleToStr(Risk,0) + "%" + NL;
sComment = sComment + sp;
Comment(sComment);
}
//+------------------------------------------------------------------+
//| expert start function |
//+------------------------------------------------------------------+
int start()
{
//----
if (UseHourTrade)
{
if (!(Hour()>=FromHourTrade && Hour()<=ToHourTrade))
{
Comment("Time for trade has not come yet!");
return(0);
}
}
int cnt, ticket, ticket2, total;
string comment = "";
if(CounterTrend==true) comment = "EMAC_Counter";
if(CounterTrend==false) comment = "EMAC_Pro";
if(ImmediateTrade==true) comment = comment + "_Immediate";
if(ImmediateTrade==false) comment = comment + "Postponed";
if(Bars<100)
{
Print("bars less than 100");
return(0);
}
if(TakeProfit<10)
{
Print("TakeProfit less than 10");
return(0); // check TakeProfit
}
int isCrossed = 0;
isCrossed = Crossed ();
if(CounterTrend==false)
{
if(isCrossed==1) isCrossed=2;
if(isCrossed==2) isCrossed=1;
}
if(UseMoneyManagement==true) Lots = LotSize(); //Adjust the lot size
total = OrdersTotal();
if(total < 1 || isNewSumbol(Symbol()))
{
if(isCrossed == 1)
{
if(UseStopLoss)
ticket=OrderSend(Symbol(),OP_BUY,Lots,Ask,slippage,Ask-StopLoss*Point,Ask+TakeProfit*Point,comment,MAGICMA,0,Green);
else
ticket=OrderSend(Symbol(),OP_BUY,Lots,Ask,slippage,0,Ask+TakeProfit*Point,comment,MAGICMA,0,Green);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES)) Print("BUY order opened : ",OrderOpenPrice());
}
else Print("Error opening BUY order : ",GetLastError());
if(UseHedging) Hedge(ticket,Lots);
return(0);
}
if(isCrossed == 2)
{
if(UseStopLoss)
ticket=OrderSend(Symbol(),OP_SELL,Lots,Bid,slippage,Bid+StopLoss*Point,Bid-TakeProfit*Point,comment,123,0,Red);
else
ticket=OrderSend(Symbol(),OP_SELL,Lots,Bid,slippage,0,Bid-TakeProfit*Point,comment,MAGICMA,0,Red);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES)) Print("SELL order opened : ",OrderOpenPrice());
}
else Print("Error opening SELL order : ",GetLastError());
if(UseHedging) Hedge(ticket,Lots);
return(0);
}
return(0);
}
for(cnt=0;cnt<total;cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderType()<=OP_SELL && OrderSymbol()==Symbol() && OrderMagicNumber() == MAGICMA)
{
if(OrderType()==OP_BUY) // long position is opened
{
// check for trailing stop
if(TrailingStop>0)
{
if(Bid-OrderOpenPrice()>Point*TrailingStop)
{
if(OrderStopLoss()<Bid-Point*TrailingStop)
{
OrderModify(OrderTicket(),OrderOpenPrice(),Bid-Point*TrailingStop,OrderTakeProfit(),0,Green);
return(0);
}
}
}
}
else // go to short position
{
// check for trailing stop
if(TrailingStop>0)
{
if((OrderOpenPrice()-Ask)>(Point*TrailingStop))
{
if((OrderStopLoss()>(Ask+Point*TrailingStop)) || (OrderStopLoss()==0))
{
OrderModify(OrderTicket(),OrderOpenPrice(),Ask+Point*TrailingStop,OrderTakeProfit(),0,Red);
return(0);
}
}
}
}
}
}
if(ContinuesHedging && OrdersCount(Symbol()) < 2)
{
//Print(OrdersCount(Symbol()));
for(cnt=0;cnt<total;cnt++)
{
ticket = OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderSymbol() == Symbol())
Hedge(OrderTicket(),OrderLots());
}
}
return(0);
}
//+------------------------------------------------------------------+
int OrdersCount(string symbol)
{
int total = OrdersTotal();
int count =0;
for(int cnt = 0 ; cnt < total ; cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if (symbol == OrderSymbol())
count++;
}
return (count);
}
void Hedge (int order_ticket , double hlots)
{
int ticket, order_type;
double order_profit;
string hcomment = "EMAC_" + Symbol() + "_Hedging";
if(OrderSelect(order_ticket,SELECT_BY_TICKET,MODE_TRADES))
{
order_type = OrderType();
order_profit = OrderProfit();
if(order_type == OP_SELL && order_profit < 0 - slippage)
{
ticket=OrderSend(Symbol(),OP_BUY,hlots,Ask,slippage,Ask-HedgingStopLoss*Point,Ask+HedgingTakeProfit*Point,hcomment,123,0,Yellow);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES)) Print("Hedgin BUY order opened : ",OrderOpenPrice());
}
else Print("Error opening Hedgin BUY order : ",GetLastError());
}
if(order_type == OP_BUY && order_profit < 0 - slippage)
{
ticket=OrderSend(Symbol(),OP_SELL,hlots,Bid,slippage,Bid+HedgingStopLoss*Point,Bid-HedgingTakeProfit*Point,hcomment,MAGICMA,0,Gold);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES)) Print("Hedgin SELL order opened : ",OrderOpenPrice());
}
else Print("Error opening Hedgin SELL order : ",GetLastError());
}
}
}
