Calculation stop loss of 1% of account per trade on MT5

bardachok posted:

pamuk posted:
Hi guys

I feel a bit stupid typing this as I believe its a very simple calculations but I need to get it right so have to ask. It seems like a very simple calculation but still does my head in.

So I've been (spoilt) using Oandas Fxtrade software which automatically calculates the monetary value of every stop loss(e.g. max 1% of account per trade) and and take profit given your leverage before any trade is placed. This makes it very easy to not think in lot sizes and only place trades using units and the actual cash value of your account.

Recently i was invited to participate in a trading challenge using MT5. Which means i have to trade using lot sizes and not units.

Given the following and my own trading preference:

25K Account
Leverage: 3:1 Hence 75K Volume
Risk ratio : 1% of account per trade. ($250 per trade)
Stop loss: 40 pips (or whatever pips so long as loss per trade is up to 1% of account per trade)

Account Currency : USD
Currency Pair: USDJPY

What lot size per trade would be appropriate given the above leverage and risking only 1% of account per trade.

Could you show me how you calculated it?

I know there are lots size calculators but i still get confused.

If i lose more than 1% of the account on any trade i will be disqualified so i want to get it right.

Thanks in advance

Simply use pip value. For USDJPY 1 lot pip value is 10 USD (10 units of base currency). Hence 40 pips move if you'd trade 1 lot would be 400 USD. Dividing 250 by 400 you get 0.625 lot