I have been looking into how you can integrate a money management and risk control systems that works in conjunction with EA system accuracy. The whole idea is to create a self reliant risk management /money management system that moves with the market and your systems accuracy.

With this you can set your max draw down and position size and that will determine how many positions you can open i.e. the Max number of Position. Thus alleviating 1 major problem overtrading which then leads to blown up accounts. So if you have 12 pairs open you can only use a set number of positions example sheet is 8.

Another filter for choosing what pair to open position in is the average win/loss ratio the highest ratio gets priority. (I have not figured how to do that yet on a pair by pair basis.)

Instead of placing a SL you use the 2% of balance as a Trailing Stop and the Max DD as the Global SL this give most systems room to move. I think this is what Alpha9v1.19 uses?

The system accuracy is very important for exits the ME is how much you position can be expected to increase, also when the market changes and your system becomes inefficient and the accuracy falls below your set requirements the system should not be traded or optimized.

The Base Target is the amount you what to use as the deposit. E.g. if your system is very consistent you don’t want to have much money at risk all the time, so if you start with $250 then grow your account to a base of 3000. You will then use the base target as the balance for all of your calculations.

Trade Details you can put some of your existing trades to see how accurate your system is by placing the Deposit in Credit/Debt and then gross P/L for the positions. And place the swaps in the Interest Colum. Please don’t use the Clear Trade Details as it will clear all the formulas. (I need to fix that)

This is just an idea I have been developing, I have gone as far as I can so now I need your input and help to develop and code.

Cheers

Beno

Attached Files

MM System.zip (75.0 KB, 178 views)

G'day Beno, thanks for sharing I think this idea has great potential, if some coders would like to look at the post I made for money mangement some of that code could be recycled for Beno's idea.

I agree leeb.

Just to remember other thread: Useful money management expert

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So who's tried it and what do you think.
what's the next step etc.

Cheers

Beno

I have to start some where.

Does any one have a code for obtaining your systems Average win/loss

or a code for the system Accuracy = (Total wins/Total orders)

Any help would be fantastic.

Cheers

Beno

I've had a hard time figuring this out as well. Creating a dynamic money management system is quite hard for me. I'm sure there are excellent programmers that can probably whip this up. But I haven't figured it out yet.

Using % based MM is easy.

Keeping track of wins and losses is harder than it looks, especially when you have many trades open at the same time. I tried to use trade history to do it, but sometimes the broker condense the history and that gets messed up.

I think you will need more than MT4 to do this accurately. If there are some geniuses willing to shed some light on this subject, I'm all ears.

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