Money management

Author: Kornel Mazur

February 26th, 2019

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Money management (or position sizing) specifies how many lots or shares are traded on each trade. StrategyQuant contains flexible money management options that can be used in the program and later also in real trading in MetaTrader. Brief description of different money management types:

Fixed size

strategy will trade with fixed number of lots. This is recommended setting when you generate new strategy, because it gives you clear overview of strategy real performance.

Fixed amount

strategy will risk a fixed amount of money for every trade. This is basic money management without compounding. It can be used to test real performance of strategies where Stop Loss is based on volatility (ATR), or if you want to compare the performance of strategies with different Stop Loss.

Risk fixed % of account

advanced money management that is recommended for real trading. The strategy will risk a given % of equity on every trade. This is simple, but very effective money management that will allow the strategy to increase number of lots as your account grows. It is generally recommended to risk maximum 2-5% of account equity per one trade.

Risk fixed % of balance

Like Risk fixed % of account, but it uses account balance instead of equity.
Account balance illustrates your closed trades Profit/Loss, while Equity is the real-time calculation of Profit/Loss, considering both open and closed. Positions.

Stocks size by price

This position sizing method is used especially used for stocks. Use account balance forces SQ to use the current account balance instead of the initial capital set

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davide Bruse
davide Bruse

Good morning, I am tring Strategy quant X and I am tring to export a strategy in mt4 with a money managment that consists of a % of the balance or the account( is the same for me) , it is a forex cross so i use 2 decimals, in SQ works but on the mt4 the % doesn’t work on the backtest and on the market (demo), the EA uses always fixed size on mt4.
Many thanks