Risklevel setting for MegaDroid

Forex Megadroid

Everybody knows that the higher the risk the higher the profits. But someone just doesn’t realize that the risk of 50% (0.5) is a possibility to lose half of the deposit with a single trade. Of course you will have great results with MegaDroid, but sometimes it loses and they will be really disappointed at that moment.

I will explain you how to calculate possible loss depending on the risklevel:

Deposit: $1000
Leverage: 1:100
Pip value: 0,0001 (4-decimal quotes)
RiskLevel: 0,2

Lot formula is:

Lot = ( RiskLevel * Free Margin ) / ( Margin Required * (100 / Leverage))

Margin Required = $1410 if current EURUSD price is 1.4096.
Free margin = $1000 (if no other trades remain open at this moment of time)

Lot = ( 0,2 * 1000 ) / ( 1410 * ( 100 / 100 ) ) = 200 / 1410 = 0,14

Maximum Stop Loss value for MegaDroid is 150 pips.

1 pip = $10 * 0,14 = $1,4
(for 5-decimal quotes it is $0,14)

150 pips = $210 – is the maximum possible loss with RiskLevel=0.2.

Recommended Risklevel setting for MegaDroid:

Low risk trading:

• For leverage 1:100 or higher: 0.1
• For leverage 1:50: 0.05

Medium risk trading:

• For leverage 1:100 or higher: 0.2
• For leverage 1:50: 0.1

High risk trading:

• For leverage 1:100 or higher: 0.3
• For leverage 1:50: 0.15

I do not recommend you to trade High Risk, but this is your own choice.