Key Auto-Calculation Concepts

There are two key auto-calculation concepts behind  the PitVIew™ Trade Ticket "Auto Lot Sizing" and "Auto Adjust"

Auto Lot Sizing

Before you trade, you should decide your risk levels, and place your trades accordingly.  Once you decide how much of your Trading Equity you are willing to risk per trade, our Auto Lot Size feature will do the calculation for you.  You can decide if want to risk a Fixed Amount of Trading Capital.  Alternatively, we also give you the ability risk a percentage of your trading Capital, a percentage of your trading Profits, or a combination of both.  You can use your customized defaults for any of these risks, or adjust them on the fly.  Regardless of what you decide to do, your orders will be created accordingly.   ThePitVIew™ Trade Ticket instantly calculates the Lot Size for your trade by looking at your Stop Loss, your Equity and your amounts being risked. 

Trade Risk Example

Auto Adjust

The first rule of trading is that you should "ALWAYS USE a STOP LOSS".  Both the Stop Loss and the Take Profit levels are calculated from the ASK price when you go long, and the BID price when you go short.  When you exit the trade, the exit will be on the opposite side of the spread opposite your entry.  It does not matter whether your go long or short, the practice in the financial markets are that ALL BUYS are at the ASK, and ALL SELLS are at the BID.  These practices effectively reduce the effective amount or your stops by the amount of the spread in each trade.  To compensate for this, you would have to calculate your stops on the fly based on the spread at the time of your entry order.   With Auto Adjust "on", the PitView™ Trade Ticket has solved this problem and automatically adds the spread to your Stop Loss for you.  

The PitView™ Trade Ticket automatically calculates your Lot Size based upon the TRUE RISK of your trade, by accounting for any combination of spreads, commissions, and slippage.

Referring to the Trade Ticket image above for example, if you are trading the EURUSD and your stops are set in the Trade Ticket for a 25 pip Stop Loss and a 50 pip take profit and you put a BUY position on @ 1.11894 ASK.  The Bid is at 1.118884 when you Buy @ 1.11894 ASK. 

  • With Auto Adjust "Off" the Real Market Move Risk "Is Not" taken into account.  In this example your Stop Loss (IPS) would be 1.11644 BID and your Take Profit (TP) would be 1.12394 BID, which equals your entry price –25 pips from the ASK and and your Take Profit at +50 pips from the ASK.  The key point is that since the trade exit is always on the other side of the spread from the trade entry, the Real Market Move Risk is 24 Pips (25 pips less the 1.0 pip spread).. 
  • With Auto Adjust "On" the Real Market Move Risk "Is" taken into account.  In this example, with a spread of 1.0, your stops would be  1.11634 BID (IPS) and 1.12414 BID (TP).  Auto Adjust adds the spread of 1.0 automatically into your Stop Loss and Take Profit calculations so you don’t have to do that calculation in your head each time.  

When Auto Adjust is enabled, the Auto Lot Size calculation takes into account the TRUE RISK of the trade.  This is an extremely valuable feature for Scalpers because the spread becomes a much more significant part of trade risk when the Stop Loss and Take Profit targets are reduced relative to the constant size of the spread.  No other trade ticket calculates TRUE RISK for you.  

Why the PitView™ Toolset?
Because it is all about Trading-With-Confidence.

Follow along to learn more…

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