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
1: CONTROL PANEL
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.
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
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.
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.
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.
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
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
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.
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
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.
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.