Hi There, Thank you in advance for any help you provide. What I am trying to achieve is scaling the position size based upon the increase or decrease of capital as the automated trading system runs. I trade CFD’s with IG Markets and because they are leveraged I have to use Margin. The number of contracts to purchase on any trade is calculated based upon how much margin said contracts will consume as a percentage of my capital, defined as risk. As the system trades and profits (or losses), I would like to readjust the number of contracts based upon the increase in capital, as the price will be changing. For example, $500 with 50% risk may allow me to purchase 250 contracts, and by making a trade that generates a profit where my total capital increases to $600, I would like it to calculate how many contracts I can purchase with this increase in capital.

Your overall margin requirement is calculated as follows: Without a stop Margin = Size x price x margin factor With a non-guaranteed stop¹ We calculate your margin with a non-guaranteed stop, compare it to the margin required without a stop, and charge the lower of the two figures as margin. Margin = (size x price x slippage factor x margin factor) + (size x stop distance)

Just some FYI’s: Margin Factor, Slippage Factor, Min Size are all set manually based upon the instrument at the broker. SetLoss, Risk are what I set.

// Definition of code parameters
DEFPARAM CumulateOrders = False // Cumulating positions deactivated
DEFPARAM Preloadbars = 2000
REM Money Management
Capital = (500 + POSITIONPERF(1))
MarginFactor = 0.25
SlippageFactor = 1.0
MinSize = 1
SetLoss = 50
Risk = 0.5
M1 = (MinSize * High[1] * SlippageFactor * MarginFactor)
M2 = ((MinSize * High[1] * SlippageFactor * MarginFactor) + (MinSize * SetLoss))
IF M1 <= M2 then
PositionSize = (ROUND((Capital/M1)*Risk))
ELSE
PositionSize = ((ROUND((Capital/M2))*Risk))
ENDIF

// Conditions to enter long positions
indicator1 = Average[10](low)
indicator2 = ExponentialAverage[20](close)
c1 = (indicator1 CROSSES OVER indicator2)
indicator3 = Average[10](low)
indicator4 = ExponentialAverage[50](close)
c2 = (indicator3 >= indicator4)
c4 = (indicator2 CROSSES OVER indicator4)
c5 = (close >= ExponentialAverage[10](close))
c6 = (close >= ExponentialAverage[50](close))
c8 = TRADEPRICE(1)

IF (c1 AND c2) OR (C4) OR (C5 AND C6 AND C8) THEN
BUY POSITIONSIZE CONTRACT AT MARKET
ENDIF

// Conditions to exit long positions
indicator5 = Average[10](low)
indicator6 = ExponentialAverage[50](close)
c3 = (indicator5 CROSSES UNDER indicator6)
indicator7 = low[1]-((AverageTrueRange[14]*2))
c7 = (close <= indicator7)
c9 = (close <= ExponentialAverage[50])
c10 = (close <= (low[2]-(2*AverageTrueRange[14])))

IF c3 OR c7 OR C9 OR C10 THEN
SELL AT MARKET
ENDIF

// Stops and targets
SET STOP pLOSS SetLoss