How Does the Lot Size and Risk Per Trade Work

he Prodigy Trade Manager simplifies risk management by automatically calculating and adjusting your lot size based on the risk percentage you set. This ensures consistent and precise control of your risk for every trade.

How It Works

1. Two Key Components: Lot Size & Risk

   • Lot Size: You can manually enter any small lot size (e.g., 0.01) in the MT5 app.
   • Risk Percentage: The Trade Manager adjusts the lot size to ensure your trade risk matches the percentage you selected (e.g., 2%).
     
     
     

2. Tailored to Your Risk

   • When you enter a trade, the Trade Manager calculates the correct lot size based on:
     • Your account balance.
     • The distance between your entry and stop loss.
     • Your chosen risk percentage (e.g., 1%, 2%, 3%).
   • If the stop loss is hit, the loss will align exactly with the percentage you set.

Example of How It Works

• Account Balance: $1,000
• Risk Percentage: 2% (maximum loss = $20)
• Stop Loss Distance: 50 pips

Step-by-Step Process:

1. You enter 0.01 lot size in MT5.
2. The Trade Manager calculates the appropriate lot size to ensure the maximum loss is only $20 if the stop loss is hit.
3. It automatically closes the 0.01 trade and opens the correct lot size (e.g., 0.04) to match your risk.

Why This Is Useful

• Convenience: You can trade directly from your phone without needing to calculate the lot size manually.
• Consistency: Ensures your risk is always controlled, no matter the stop loss distance.
• Flexibility: Perfect for traders who take signals or trade on the go, as the Trade Manager does the calculations for you.