I would urge you to change to using my money management and just setting it to 5 as the risk instead of 2, because dragon33 said I was correct when I figured he risked 5% per trade. This indicator is actually risking 50% per trade if someone uses it! The money management equation is just wrong. Let's look at it:
STOP LOSS (PIP)
PIP VALUE PER LOT
LOTS: INDICATOR MM = ACCOUNT BALANCE / (STOP LOSS X PIP VALUE PER LOT X RISK) (money management equation in indicator)
LOTS: INDICATOR MM = 500 (account balance) / ( 20 (stop loss) x 10 (pip value per lot) X 2 (risk) )
LOTS: INDICATOR MM = 1.25 (1 STANDARD LOT, 2 MINI LOTS, & 5 MICRO LOTS)
First, in inputs, myMultiplier1 is 10, and I see that it refers to TickValue. myMultiplier2 is 2, and I see that it refers to risk percent. This is at least what I ascertain, since it is vague description, but I will assume i am correct from looking inside the indicator.
LET'S CHECK THE MATH TO SEE IF WE ARE REALLY ONLY RISKING 2%, SHALL WE?
$ TO RISK = ACCOUNT BALANCE X (RISK/100)
$ TO RISK = 500 (account balance) x (2/100) (risk percent)
$ TO RISK = 500 x .02
$ TO RISK = 10
HOW MUCH ARE WE RISKING WITH THE MONEY MANAGEMENT EQUATION IN THE INDICATOR?
FIRST, WE'LL DEFINE THE EQUATION TO USE TO CHECK:
STOP LOSS X PIP VALUE PER LOT X NUMBER OF LOTS
$ ACTUALLY RISKED = 20 (stop loss) x 10 (pip value per lot) x 1.25 (number of lots picked by money management equation in indicator)
$ ACTUALLY RISKED = 250
% ACTUALLY RISKED = 0.5
RISKING 50% ONE ONE TRADE?!?! THAT'S 25 TIMES THE 2% ASSUMED TO BE RISKED IF SOMEONE USES THE INDICATOR!
PLEASE, USE MY MONEY MANAGEMENT EQUATION. WE'LL CHECK THE MATH ON IT TO SHOW IT PICKS THE RIGHT NUMBERS OF LOTS THE USER SHOULD TRADE, GIVEN THE USER'S ACCOUNT BALANCE, USER-DEFINED PERCENT TO RISK, USER-DEFINED STOP LOSS, AND PIP VALUE PER LOT (which is approximately $10 - a standard lot in MT4, at least with FXDD, and mini and micro lots are after the decimal, such as 1 mini lot being 0.1, value of approx. $1, and 1 micro lot being 0.01, value of approx. $0.10).
LOTS: DON MM = (ACCOUNT BALANCE X (RISK/100)) / (STOP LOSS X PIP VALUE PER LOT)
LOTS: DON MM = ( 500 (account balance) x (2/100) (risk percent) ) / ( 20 (stop loss) x 10 (pip value per lot) )
LOTS: DON MM = (500 x 0.02) / (20 x 10)
LOTS: DON MM = 10/200
LOTS: DON MM = 0.05 (5 MICRO LOTS)
DON MM RESULTS FOR RISK:
$ ACTUALLY RISKED = 20 (stop loss) x 10 (pip value per lot) x 0.05 (number of lots picked by money management equation in indicator)
$ ACTUALLY RISKED = 10
% ACTUALLY RISKED = 0.02
NOW ONLY RISKING 2%, JUAT LIKE THE INDICATOR SAYS (or should say, instead of just saying myMultiplier2). MUCH BETTER!
Even if the user wanted to risk 5 percent, at least they could choose to do so, and they would know that the number of lots they are given by the indicator will only risk that percentage, given the account balance, chosen stop loss, and value per pip per lot.
Thank you ahead of time for reading, and I went ahead and changed the indicator and posted as DON money management instead of DRAGON money management (some posts down from this one), before someone blows their account out with a couple bad trades.
Much respect to you for wanting to help others. I just want to know and want others to know that what they think they are risking is all they really are risking.
Dragon shared his money management formula.
I wrote TRO_DRAGON_MONEY_MGMT to do the calculations.
You can enter your account size or enter 0 and TRO_DRAGON_MONEY_MGMT will display the values.
MT4 version of TRO_DRAGON_MONEY_MGMT, including source code, atttached.