My trade copier software comes with 4 different types of money management.
- Risk Ratio Server
- Fixed Lot Size
- Lot Multiplier
- Risk Percent
RiskRatioServer – This is the most popular money management mode among traders. It will follow the exact same risk as signal provider’s account, even if your account is of a different size. For example, if the master account risk is 5% on a trade, the client EA will risk 5% on your account also. This 5% risk is according to your available account equity at that moment. You can set the ratio to any value and control your risk size. If you set this value to 1.5 your risk will be 7.5% (5 x 1.5) in this example. Note that the master account can have different risk levels on every trade and still the client EA will handle that this as well. Basically, if the slave account is 10 times bigger than the master account, Client EA will use a lot size 10 times bigger as well. To enable this feature please set the FixedLotSize value to 0, as well as 0 (zero) for the LotMultiplier and RiskPercent settings also.
FixedLotSize – Here you enter the fixed lot size that will be used for each trade. This allows you to set the Client EA to trade the same lot size no matter what the signal provider/Server EA uses. If money management settings are set incorrectly then the EA will use the FixedLotSize option by default. To enable this feature please set a zero value on RiskRatioServer, LotMultiplier and RiskPercent fields.
LotMultiplier – This variable is used to set a different lot size on the client side automatically using a multiplier. Whatever lot size that your signal provider uses on their account will be multiplied by this value and applied to your account. Please see examples of how LotMultiplier is used at the bottom of this document. To enable this feature please set a zero value on RiskRatioServer, FixedLotSize and RiskPercent options.
RiskPercent – This variable is used to set the lot size according to your available account equity, represented as a percentage. This value has a limit of 10%. It means that client cannot set the risk higher than 10% per trade. To calculate lot size by risk-in-percent the trade must have a stop loss set on the master account. If there is no stop loss set by the master account the EA will delay such trade and will not execute it until stop loss is set. Client EA will show a “Delayed” signal and counter in the Blue Box dashboard so you can see how many trades are delayed. To enable this feature please set zero values on RiskRatioServer, FixedLotSize and LotMultiplier options.
Examples on how to use Lot Multiplier
Example 1: The signal provider trades on a 1,000 account and your account is much larger at 50,000. If your signal provider issues a signal and the lot size is based on their account size then you would receive too small of a trade on your larger account. In this case, you can set the multiplier to 50, and then when the signal provider opens a 0.1 lot size position you will have a 5.0 lot size position opened in your account. (But you should always watch out for a variable size of trade coming from your signal provider(s). If the lot sizes vary or there is any reckless trading done with lot sizes that are disproportionately large, it could be detrimental to your account).
Example 2: The signal provider trades on a 100,000 account and your account is 20,000. It would be dangerous to use the same lot size of course, and often it would be impossible to begin with. You would set LotMultiplier to 0.2 and when signal provider opens 10.0 lot size position you will get 2.0 lot size position. If the resulting lot is smaller than the minimum lot size set by your broker, the copier EA will use the minimum lot size so the order can still be filled.