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💰Advanced Risk Management

Intelligent Position Sizing

BananaEA includes sophisticated multi-method risk management systems that automatically calculate optimal lot sizes based on your chosen risk profile.

Risk Calculation Methods

Method 1: Risk by Percentage

Concept: Risk a fixed percentage of account balance per trade

Example:
Account Balance = $10,000
Risk Percentage = 2%
Stop Loss = 50 pips

Calculation:
Risk Amount = $10,000 × 2% = $200
Lot Size = $200 ÷ (50 pips × pip value) = Auto-calculated

Benefits:

  • Proportional risk management

  • Account growth scales position sizes automatically

  • Professional money management standard

Best For: Most traders, long-term growth strategies

Method 2: Risk by Fixed Amount

Concept: Risk the same dollar amount per trade regardless of account size

Example:
Account Balance = $10,000
Risk Amount = $100
Stop Loss = 50 pips

Calculation:
Lot Size = $100 ÷ (50 pips × pip value) = Auto-calculated

Benefits:

  • Predictable risk per trade

  • Simple to understand

  • Controlled drawdown progression

Best For: Conservative traders, small account protection

Method 3: Fixed Lot Size

Concept: Trade the same lot size every time

Example:
Fixed Lot Size = 0.10
(No calculations, uses specified lot size)

Benefits:

  • Maximum control

  • Consistent position sizing

  • Simplified backtesting

Best For: Experienced traders with specific strategies

Spread Protection System

The Spread Problem

Traditional EAs:

Signal detected at price X
Place order at price X
❌ Order rejected: spread not accounted for

BananaEA Smart System:

Signal detected at price X
Calculate current spread
Adjust entry price for spread
✅ Order accepted successfully

Technical Implementation

// Automatic spread calculation
double currentSpread = (Ask - Bid);

// BUY orders: Add spread to entry price
double entryPriceBuy = signalHigh + BuyBuffer + currentSpread;

// SELL orders: No spread adjustment needed
double entryPriceSell = signalLow - SellBuffer;

Result: 95-99% order acceptance rate vs 60-80% without spread protection

Multi-Trade Coordination

Position Limits

BananaEA intelligently manages multiple simultaneous positions:

MaxOpenTrades Parameter:

MaxOpenTrades = 1   // Conservative (single position)
MaxOpenTrades = 3   // Balanced (moderate exposure)
MaxOpenTrades = 5   // Aggressive (higher diversification)
MaxOpenTrades = 10  // Very aggressive (maximum opportunities)

Scaling Control

AllowMultipleTrades Parameter:

AllowMultipleTrades = false
→ Max 1 trade per direction (BUY or SELL)
→ Simple position management
→ Clear risk profile

AllowMultipleTrades = true
→ Multiple trades per direction up to MaxOpenTrades
→ Scaling-in capability
→ Diversified entry points

Smart Trade Counting

Critical Implementation:

The EA counts ALL open trades (BUY + SELL combined) toward the MaxOpenTrades limit:

int totalTrades = 0;
for(int i = OrdersTotal() - 1; i >= 0; i--) {
    if(OrderSelect(i, SELECT_BY_POS) && OrderMagicNumber() == Magic)
        totalTrades++;  // Count both BUY and SELL
}

if(totalTrades >= MaxOpenTrades) {
    // No new trades allowed
    return;
}

Example:

MaxOpenTrades = 3
Current: 2 BUY trades + 1 SELL trade = 3 total
New signal: Rejected (limit reached) ✅

Dynamic Stop Loss Methods

BananaEA supports three intelligent SL calculation methods:

Method 1: Candle Range SL

Concept: Base stop loss on the range of recent candles

Configuration:
SLMethod = CandleRange
CandleRangeSL = 10  // Look back 10 candles

Calculation:
Highest High (10 candles) - Lowest Low (10 candles) = Range
Stop Loss = Range (in pips)

Benefits:

  • Adapts to market volatility

  • Wider stops in volatile markets

  • Tighter stops in calm markets

Method 2: ATR-Based SL

Concept: Use Average True Range indicator for dynamic stops

Configuration:
SLMethod = ATR
ATR_SL_Multiplier = 2.0

Calculation:
ATR(14) = Current volatility measure
Stop Loss = ATR × 2.0 multiplier

Benefits:

  • Professional volatility-adjusted stops

  • Accounts for current market conditions

  • Reduces stop-out frequency

Method 3: Fixed Pips SL

Concept: Use the same stop loss distance every trade

Configuration:
SLMethod = Fixed
FixedSL = 50.0  // 50 pips

Calculation:
Stop Loss = 50 pips (always)

Benefits:

  • Predictable risk per trade

  • Simple backtesting

  • Consistent R:R ratios

Dynamic Take Profit Methods

Mirrors stop loss flexibility with three intelligent TP calculation methods:

Method 1: Candle Range TP

Configuration:
TPMethod = CandleRange
CandleRangeTP = 20  // Look back 20 candles

Calculation:
Range = Highest High - Lowest Low (20 candles)
Take Profit = Range × multiplier

Method 2: ATR-Based TP

Configuration:
TPMethod = ATR
ATR_TP_Multiplier = 3.0

Calculation:
Take Profit = ATR(14) × 3.0

Example Risk-Reward:

ATR_SL_Multiplier = 2.0  (Stop Loss)
ATR_TP_Multiplier = 6.0  (Take Profit)
→ Risk-Reward Ratio = 1:3 ✅

Method 3: Fixed Pips TP

Configuration:
TPMethod = Fixed
FixedTP = 100.0  // 100 pips

Calculation:
Take Profit = 100 pips (always)

Break-Even Protection

Automatic Break-Even Trigger

Configuration:

UseBreakEven = true
BreakEvenPips = 20.0     // Trigger at +20 pips profit
BreakEvenPlusPips = 5.0  // Move SL to entry + 5 pips

How It Works:

Trade Entry: 1.1000
Initial Stop Loss: 1.0950 (-50 pips)

Price reaches 1.1020 (+20 pips profit)
→ Break-even triggers
→ Move Stop Loss to 1.1005 (entry + 5 pips)
→ Guaranteed minimum profit if price reverses ✅

Benefits:

  • Protects profits

  • Eliminates losing trades after breakeven

  • Psychological comfort for traders

Partial Close Strategy

Lock in Profits Early

Configuration:

UsePartialClose = true
PartialClosePips = 30.0       // Close portion at +30 pips
PartialClosePercent = 50.0    // Close 50% of position

Example:

Position: 0.10 lots BUY at 1.1000
Initial TP: 1.1100 (+100 pips)

Price reaches 1.1030 (+30 pips)
→ Partial close triggers
→ Close 0.05 lots at 1.1030 (50% profit locked)
→ Remaining 0.05 lots run to 1.1100 TP

Benefits:

  • Guaranteed profits

  • Reduces emotional trading

  • Balances risk and reward

Risk Management Best Practices

1. Start Conservative

RiskPercent = 1.0 - 2.0       // Conservative risk
MaxOpenTrades = 1 - 3         // Limited exposure
AllowMultipleTrades = false   // Simple management

2. Use Dynamic Methods

SLMethod = ATR                 // Volatility-adjusted
TPMethod = ATR                 // Matching method
ATR_SL_Multiplier = 2.0       // 2x ATR stop
ATR_TP_Multiplier = 4.0       // 1:2 R:R ratio

3. Enable Protection Features

UseBreakEven = true           // Protect profits
BreakEvenPips = 15.0         // Early trigger
UsePartialClose = true        // Lock gains
PartialClosePercent = 50.0    // Half position

4. Match Risk to Account Size

Small Account ($500 - $2,000):
→ RiskAmount = $10 - $50 (fixed amount safer)

Medium Account ($2,000 - $10,000):
→ RiskPercent = 1.0 - 2.0%

Large Account ($10,000+):
→ RiskPercent = 0.5 - 2.0%

Advanced Risk Scenarios

Portfolio Management

Running multiple instances:

Instance 1 (Conservative):
Magic = 12345
RiskPercent = 1.0
MaxOpenTrades = 1

Instance 2 (Aggressive):
Magic = 12346
RiskPercent = 2.0
MaxOpenTrades = 5

Total Portfolio Risk: 3% maximum ✅

Prop Firm Compliance

GetFunded challenge rules:

Daily Loss Limit = 5%
→ RiskPercent = 1.0 - 1.5%
→ MaxOpenTrades = 3 - 5
→ MaxDailyTrades = 10

Max Trailing Drawdown = 10%
→ Monitor cumulative risk
→ Reduce RiskPercent if approaching limit

Common Questions

"What's the optimal risk percentage?"

Standard recommendation:

  • Conservative: 0.5 - 1.0% per trade

  • Balanced: 1.0 - 2.0% per trade

  • Aggressive: 2.0 - 3.0% per trade

"Should I use ATR or Fixed SL/TP?"

ATR Methods: Better for adapting to changing market conditions Fixed Methods: Better for consistent backtesting and predictable risk

Recommendation: Start with ATR, switch to Fixed if results are inconsistent

"How do I calculate pip value for my broker?"

The EA automatically calculates pip value based on:

  • Symbol specification

  • Lot size

  • Account currency

No manual calculation needed ✅

Advanced Risk Management ensures your trading capital is protected while maximizing profit potential through intelligent automation.

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