This document provides instructions for calculating trading parameters based on an investor's capital and risk tolerance. It asks the user to enter their starting capital of $100,000, risk factor of 5%, and stop loss in pips of 1000. Based on these inputs, it calculates the maximum lot size the user can trade as 0.50, meaning they can risk losing $5,000 which is 5% of their capital.
This document provides instructions for calculating trading parameters based on an investor's capital and risk tolerance. It asks the user to enter their starting capital of $100,000, risk factor of 5%, and stop loss in pips of 1000. Based on these inputs, it calculates the maximum lot size the user can trade as 0.50, meaning they can risk losing $5,000 which is 5% of their capital.
This document provides instructions for calculating trading parameters based on an investor's capital and risk tolerance. It asks the user to enter their starting capital of $100,000, risk factor of 5%, and stop loss in pips of 1000. Based on these inputs, it calculates the maximum lot size the user can trade as 0.50, meaning they can risk losing $5,000 which is 5% of their capital.