This feature is used to automatically increase or decrease the number of contracts to match the maximum risk specified in this option. Risk is calculated using the stop-loss distance from the entry price. Therefore, if an order set does not
have a stop-loss the number of contracts will be set to zero, for that order set, because the risk can not be calculated. This feature will adjust the number of contracts regardless of how the trade is submitted; auto trading, Dynamic Planning
, or the Trade Control buttons
. The setting OCO Order set » Quantity Scaling
directly affect this feature. Please read OCO Order set » Quantity Scaling
carefully if you have adjusted those options.
The risk amount can be entered as a currency value, or as a percentage of your trading account balance. When using ‘% of Account’, the Account Size field above must be set correctly to your actual account balance. The Account Size remains fixed. It is not updated in real-time using traded PnL.
If the Account Size = $10,000, and Risk Per Trade = 2%, the maximum risk allowed equals $10,000 × 2% = $200. The number of contracts will be reduced or increased to fit that $200 maximum risk.
) If trading the CL (light crude oil) with a 10 tick stop-loss, the number of contracts will be set to 2, because a 10 tick loss equals $100 / contract (1 tick/contract = $10/contract, $10 × 10 ticks = $100/contract).
) If trading the CL (light crude oil) with a 12 tick stop-loss, the number of contracts will be set to 1, because a 12 tick loss equals $120 / contract (1 tick/contract = $10/contract, $10 × 12 ticks = $120/contract). 2 contracts would equal a $240 stop-loss which exceeds the the $200 risk.