ONE-TO-MANY - FOREX TRADE CALCULATOR

in-depth view for forex tool #11
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This is one of the forex trade calculation tools in the kit, it is designed to convert a single trade setup into up to 5 trades, using either the original risked cash or position size as calculation anchor.

The tool uses custom defined weights to generate the new positions, which can greatly boost profits or reduce losses if used correctly with respect to actual previous forex trading performance.

A trade setup can be directly entered into the tool, or instantly imported from any of the other trading tools.

This page will cover everything regarding this tool in details, covering the data flow from/to the tool, the purpose of the tool, the tool's features, and the tool's contents and structure. All screenshots used will show just the part of the tool being explained, a native screenshot for the tool as a whole can be viewed/saved using the link above.

TOOL'S DATA FLOW

The below illustration details the type of data flow between this tool and other tools directly connected to it, to see the bigger picture for the whole toolkit's data flow please check this illustration.

Detailed data flow from/to "One-to-Many" forex trading management tool

detailed data flow from/to "One-to-Many" forex trading management tool

The tool is connected to all the other trading tools, a trade setup that is ready in any of these tools can be imported by a single click. Importing a trade setup will automatically fill the trade inputs, chosen brokerage account, and currency preset.

When a trade setup is is processed in the tool, the generated positions can be imported into "Active Trades" tool, where each position will be treated as a single trade so that if any of them didn't trigger, it can be cleared, leaving only the triggered ones.

TOOL'S PUPROSE

This tool is different from the other trading tools in the sense that it operates on an already determined trading setup, while other tools will complete a trade setup according to the current checkpoint's thresholds.

The idea behind the tool is to make use of past performance to improve the output of the next forex trade by dividing it into multiple smaller trades. It is very rare that once a trade setup is triggered, the trade will instantly go towards its target, the majority of winning trades will go against the trader for a while before actually heading towards the target. By studying past performance, a trader can conclude how far a trade usually goes the opposite direction before reversing and heading towards his planned target.

There are two algorithms used by the tool to calculate and generate the new positions. One of them is targeted towards reducing losses if the trade ended by hitting stop loss or slightly increasing profit if the trade ended by hitting take profit, while the other algorithm will keep the loss as it was planned for the original trade if it ended by hitting stop loss or boosting the profit if the trade ended by hitting take profit.

TOOL'S FEATURES

"One-To-Many" tool features - Up to 5 weighted positions

Up to 5 weighted positions

A single trade setup can be converted to 2, 3, 4 or 5 weighted trades. Positions can be assigned weights starting from 5 all the way to 95 (with increments of 5), where the total weights for the chosen positions count should all add to 100.

Weights are dynamic according to the choosen algorithm. If the algorithm is based on risked cash, the weights will be applied to the risked cash for each generated trade. While if the algorithm is based on position size, the weights will be applied to the position size for each generated trade.

"One-To-Many" tool features - Single click importing

Single-click trade setup import

Trades from any of the other trading tools can be imported by a single click. Importing from any of the trading tools will transfer both the chosen brokerage account and currency preset, in addition to (entry rate, take profit rate, stop loss rate, and position size) for that trade setup, and the currency structure of the traded forex pair.

"One-To-Many" tool features - Threshold by pips or rate

Threshold by pips or rate

Threshold is the rate of the last trade that might get triggered. That rate can either be chosen by directly entering the desired rate, or by entering the pip distance from stop loss rate.

If the chosen positions count is only two, the first position will have its entry rate the same as the original trade's entry rate, and the second position will have its entry rate as per the choosen threshold. While if the chosen positions count is (3, 4, or 5), the remaining trades will be distributed evenly between the first position and the threshold position.

"One-To-Many" tool features - 2 calculation algorithms

2 calculation algorithms

The first calculation algorithm is intended for forex traders with high win/loss ratio, that algorithm will keep the the sum of risked cash of new positions equals the risk cash of the original trade, while boosting the profits signigicantly (if all the generated positions are triggered). The second calculation algorithm is intended for traders with low win/loss ratio, that algorithm will keep the sum of position size of new positions equals the position size of the original trade, that way if the trades hit stop loss, the cash lost will be less that the originally planned loss, and will still boost the profit (if all the generated trades are triggered), but not as significantly as the other algorithm.

Choosing either algorithm and defining thresholds should be done with respect to previous performance. Generally speaking, a trader's performane is increased when he makes use of his past performance, and this tool enables getting the best output based on that knowledge and assesment of past perfomance.

"One-To-Many" tool features - 2 calculation passes

2 calculation passes

For both algorithms, the tool will do 2 complete calculation passes. The first pass will use the defined weights to generate new positions, after that pass there might be position or risked cash leftovers, the second pass will try to add those leftovers to the nearest positions that can accept those leftovers without exceeding the intended risked cash or position threshold.

TOOL'S CONTENTS & STRUCTURE

In-depth demonstration for the 5 sections of the tool

This tool consists of 5 main sections, 1: control panel to manage currency preset and forex brokerage account to be used, 2: Trade setup & information section where the trade's data is entered or imported, 3: multi-point setup section where the positions' weights are defined and new the trades are generated, 4: broker & money management probabilities section the probabilities for each of the generated trades are shown from each of the selected forex brokerage account and money management point of views, and 5: money management status section which shows the active checkpoint's status for reference.

To demonstrate the tool, all the screenshots below will show an example imported trade setup from "Custom Trade" tool, it is a Harmonic Deep Crab pattern found on GOLD (XAU/USD) pair on 20-Apr-2016, which is one of the two trades used to demonstrate the "Active Trades" tool. Both of the tool's dominant currency and the selected forex brokerage account base currency are (USD), which makes this example simpler and easier to calculate compared to the examples used for "Stop Loss Rate" & "Take Profit Rate" tools.

1: CONTROL PANEL

"One-to-Many" forex trading management tool in-depth: setting currency preset

setting currency preset

SETTING CURRENCY PRESET

In this part, the currency preset to use for calculations is chosen from the 6 configured presets.

The information panel shows the structure of the chosen preset for reference. Since a single currency preset can be used for many currency pairs sharing the same structure, the currency preset chosen here doesn't have to reflect the actual name of the pair being traded, the actual traded pair's name is set in "Active Trades" tool once the trade is imported there.

"One-to-Many" forex trading management tool in-depth: setting broker preset

setting broker preset

SETTING BROKER PRESET

In this part the forex brokerage account is selected from any of the 6 configured presets. The chosen account will be used for all calculations done by the tool for the trade setup. This can be helpful in deciding the best account to use for that specific trade by knowing the margin details and how far that trade will be from a margin closout, all calculations are done instantly as the different brokerage accounts are selected.

The information panel for this option shows the total balance in that account, how much is that balance worth compared to trading balance, leverage, margin closout, and available margin. Balance for the selected account can be directly updated in this part, where the new balance will be saved for the selected brokerage account and will be populated to the whole toolkit instantly.

"update rate" option is automatically enabled only if the selected brokerage account's base currency is different from money management currency. Entering the exchange rate and clicking update will instantly recalculate the trade setup's possible outcomes with respect to trading balance, and the new exchange rate will be saved for that brokerage account's preset. In our example, the traded pair contains the base currency of the selected brokerage account, thus the update button is disabled.

2: TRADE SETUP & INFORMATION

"One-to-Many" forex trading management tool in-depth: Trade setup - step 1

trade setup - step 1

TRADE SETUP - STEP 1

This is where the trade setup is entered, inputs are (entry rate, stop loss rate, take profit rate, position size, and trade direction). Those entries will be automatically filled if the trade is imported.

The "USD placement" option is dynamic and the currency will change according to the base currency of the chosen brokerage account, this allows the tool to calculate pip value and margin details correctly.

When a trader uses multiple forex brokerage accounts then most likely the reason is to use an account with a base currency matching either the base or quote of the traded pair, which is the case in our example where the traded pair contains USD, the same currency of the chosen brokerage account. However, in case of having a single brokerage account and wanting to trade a currency pair where both its base and quote currencies are different from the brokerage account base currency, option "xxx/yyy" can be selected and the structure and exchange rates for both of the pair's base/quote are entered with respect to the brokerage account currency.

There are two information panels in this part, they will display information and error messages for the trade setup rates and base/quote exchange rates, as well as errors that might occur when overriding money management values.

"One-to-Many" forex trading management tool in-depth: Trade setup - step 2

trade setup - step 2

TRADE SETUP - STEP 2

This is where the threshold is defined, either by directly entering the rate or by entering pip distance.

In case of choosing pip distance, the amount of pips will be measured from the stop loss rate towards the entry rate. For example, if stop loss is 100 pips away from entry rate, and threshold by pips is set to 60 pips, the threshold rate will be 40 pips away from entry rate and 60 pips before stop loss rate.

"One-to-Many" forex trading management tool in-depth: Trade setup - step 3

trade setup - step 3

TRADE SETUP - STEP 3

In this step, both the algorithm used for calculations and the count of generated positions are defined. Trades to be weighted will be automatically enabled in the multi-point setup according to the selected trades count, where those weights must add up to 100.

When configured correctly, the information panel will show information for the approximate pip length between the generated positions. Otherwise, the panel will give a warning that the multi-point setup isn't properly configured.

"One-to-Many" forex trading management tool in-depth: Trade information

trade information

TRADE INFORMATION

This part shows the technical aspects of the original trade.

  • Pips to stop loss: pip length from entry rate to stop loss rate.
  • Risked cash: risked cash with respect to selected brokerage account's base currency.
  • Pips to take profit: pip length from entry rate to take profit rate.
  • Expected profit: expected profit with respect to selected brokerage account's base currency.
  • Pip value: value of a single pip with respect to selected brokerage account's base currency.

3: MULTI-POINT SETUP

"One-to-Many" forex trading management tool in-depth: multi-point setup

multi-point setup

This part shows the entry rate and position size for each of the generated positions, alongside (pips to stop loss, pips to take profit, reward/risk ratio) for each of them.

Weights for those positions must be correctly configured, where the sum of weights must be equal 100. To avoid any confusion, drop-down menus for selecting weights are automatically enabled only for the slots that will generate outputs.

The information panel will display error message if the multi-point setup isn't correctly configured.

4: BROKER & MONEY MANAGEMENT PROBABILITIES

"One-to-Many" forex trading management tool in-depth: Possible outcomes - brokerage account

possible outcomes - brokerage account

POSSIBLE OUTCOMES - BROKERAGE ACCOUNT

This part shows the possible outcomes for each of the generated positions from the forex brokerage account point of view.

  • Loss: risked cash and percentage with respect to selected brokerage account.
  • Profit(cash): expected profit and percentage with respect to selected brokerage account.
  • Margin: required margin for that position.
"One-to-Many" forex trading management tool in-depth: Possible outcomes - money management

possible outcomes - money management

POSSIBLE OUTCOMES - MONEY MANAGEMENT

This part shows the possible outcomes for each of the generated positions from the money management point of view.

  • Loss: risked cash and percentage with respect to money management.
  • Profit(cash): expected profit and percentage with respect to money management.

The information panel for this part will informa if the risk threshold isn't enough to enter the market with the smallest possible position, or if the balance in the selected brokerage account isn't enough to cover the calculated trade setup.

5: MONEY MANAGEMENT STATUS

"One-to-Many" forex trading management tool in-depth: Active checkpoint's data and thresholds

checkpoint's data and thresholds

CHECKPOINT'S DATA & THRESHOLDS

This part shows the data recieved from the money management tool "Checkpoints" when a new checkpoint is opened, all the values here never change starting from the moment a new checkpoint is opened till it is closed.

  • Trading balance: balance at the active checkpoint's opening.
  • Risk%: risk percentage with respect to trading balance.
  • Cash at risk: risked cash for the active checkpoint.
  • Profit %: target profit percentage with respect to trading balance.
  • Target profit: target profit for the active checkpoint.
  • Reward:Risk: default R:R ratio used by the trading tools.
"One-to-Many" forex trading management tool in-depth: Active checkpoint's standing

checkpoint's standing

CHECKPOINT'S STANDING

This part shows the current checkpoint's standing according to both closed & active trades, as well as remaining risk that can be used for more trades.

  • Closed: output of all closed trades during the active checkpoint.
  • Active risk: total risk for all the current active trades.
  • Collective: total output of both closed & actived trades.
  • Checkpoint output: status and percentage of closed trades, with respect to the checkpoint's opening balance.
  • Safe to risk: remaining risk that can be used for trading.