Forex Auto Allocation

How Auto Allocation Mode Works

The Auto Allocation Mode formula calculates lot allocation based on each Trader’s Necessary Minimum Equity (NME) which is the minimum required capital to execute all trades of a Trader by one micro lot volume per trade

User provides the Risk Meter Bar value (0%-100%) indicating the amount of capital that will be risked in the worst case scenario according to historical data. Please note that this calculation can exceed expectations if Traders execute worst trades in the future. The formula will then auto-fill the "Lots" box for each Trader. Each Trader also has a Risk Weight factor (1-5) that can be set by the user and will assign more lots to Traders with higher factor and less to Traders with lower factor.

The exact calculation formula is provided below in 2 steps:

Step 1 - Calculate Available Capital to risk

Firstly, we calculate user’s available capital based on the risk percentage is he willing to take.

Step 1 - Calculate Available Capital to risk

Step 2 - Calculate Lots for each Trader based on NME and risk weight

Now using the available capital found in previous step, we calculate the number of lots we can assign to each Trader in user’s portfolio based on Trader’s Necessary Minimum Equity (NME).

User also has the ability to allocate his available capital differently to each Trader specifying different weights.

Step 2 - Calculate Lots for each Trader based on NME and risk weight

Visual Representation

Calculate Available Capital to risk
Calculate Lots for each Trader based on NME and risk weight
RISK %
Notes
  • Balance: Account’s current balance
  • Capitalavailable: Amount of money user may risk
  • Necessary Minimum Equity (NME) is the minimum capital required to trade all trades from each Trader in your account, if you were trading micro lots.