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Forums>StrategyQuant>Application Support>Money Management and Stop-Loss/Profit-Take question

  • #268883 |
    iTrader
    Participant
    1 Posts

    Dear Community and Admin,

    This is my first post and it’s a request for suggestions.

    I am practicing with StrategyQuant and I think that both the “Builder” and “AlgoWizard” part is very useful to focus on the strategy not on the code and finally a Solution that allows to do backtesting in an optimal way both for MT4 and MT5. Congratulations! I would have liked to meet you some time before :)

    After having done some tests with the default settings I am focusing on the Money Management and Risk part and I would like to have the confirmation of how to configure this aspect and feed it to SQ.

    These are my parameters on Manual Trading that I would like to bring back in SQ. Basically Risk 1-5% of the account on every trade, which I calculate like this:
    1. According to the strategy I use I find an entry
    2. According to the rules of the strategy I find the Stop-Loss (e.g. 100 pips)
    3. On this I evaluate a Take-Profit/Profit-Target of at least 1.3 (e.g. 130 pips), otherwise I don’t enter.
    4. On the amount of pips of the Stop-Loss, I calculate my % risk in terms of lots with which to open the position using the currency value of the pip of the specific cross.

    With respect to point 1 I am rewriting strategies with AlgoWizard but also getting very good results with Builder (which is great).

    With respect to point 4 I have seen that there is Money Management to set 1% of the account risk (Risk Fixed and % of Account/Balance), which is an acceptable simplification of the approach that I could solve with some MetaTrader input parameters that I will adjust every now and then.

    The thing I don’t understand – if someone can give me some advice – is how to set the correct ratio between SL and PT (even setting directly the 1% Risk Fixed in the Money Management).

    I am trying to use the settings in “What we build” with Risk on MM at 1% putting:
    – SL: required and fixed between 0 and 100 pips
    – PT: required and prefixed between 130 and 300 pips and checking the Risk/Reward ratio at 130%.
    But after several days on GBPUSD and EURUSD crosses I am not getting usable strategies.

    What can I do?

    Thank you,

    #268988
    tomas262
    Administrator
    1671 Posts

    Hello,

    if you work your strategy in AlgoWizard and determine the stop-loss in pips you can easily save that value into a variable and then multiple that variable by 1.3 to get the value needed for the profit-target. If you need any help with that let me know

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