Pyramid Panel Usage Series Episode 4 — Risk% Lot: Keep the amount of loss per trade constant at all times
Up to now, we have looked at Pyramid (aggressive) and Averaging Down (defensive). This time, the foundationfor deciding lot sizesis discussed. Fixed lot sizes like “always 0.1 lots” are easy to understand, butthe amount you can lose per trade varies by situation. The PYRAMID PANEL’sRisk% Lotis calculated from the stop-loss width, using the method of “fixing the loss per trade to a certain percentage of capital.”
If you trade with a constant 0.1 lot, the loss amount isn’t fixed even though the lot is.Loss amount varies depending on SL width. On days with a wide SL, losses are larger; on narrow days, smaller. Even with the same 0.1 lot, the damage when you lose changes each time.
Furthermore, since the amount is fixed regardless of capital increases or decreases,the risk ratio to capital drifts. This is a reason why capital management can break even when you are winning.
Risk% Lot is the idea of “fixing the loss per trade to a certain percentage of capital.” Once capital and SL width are determined, the appropriate lot is uniquely defined.
If SL width is wide, the lot is small; if SL width is narrow, the lot is large, and it auto-adjusts. As a result,the amount you lose when you lose is kept constant in any scenario. This forms the foundation for long-term trading.
With PYRAMID PANEL, you canswitch from fixed lot to Risk% approach,enter Risk% and SL widthto obtain. The calculatedplanned lot is displayed on the spotso you can press the button with confidence.
This calculated lot applies not only to the first shotbut also to each bound of Pyramid/Averaging Down. Without tapping a calculator, the lot adjusts automatically when you change SL width—eliminating the most tedious and error-prone manual work.
① An SL width is required. Risk% Lot is calculated from “loss corresponding to the SL width,” so if SL width is empty, the lot cannot be calculated (the panel will display this).
② Risk% is “per bar”. If you build multiple layers with Pyramid/Averaging Down, the total risk when all are filled becomes “per bar × number of bars.”Number of bars and widthalso consider total risk.
Because this is a semi-discretionary tool, final lot size and number of positions are your responsibility. FX/CFD trading carries risks, and final trading decisions should be made by you.
※This article is for information provision and not investment solicitation. The displayed performance results are past performance and do not guarantee future profits. FX and CFD trading carry risks. Investment decisions should be made at your own risk.