QUICK START for the FOREX SMART TOOLS
ADVANCED POSITION SIZE CALCULATOR
These 3 steps will have you up and running with the Forex Trade Advanced Calculator right away.
Then explore the complete Knowledge Base to deepen your understanding of how to get the most out of this powerful tool for your Forex Trading.
To make your initial connection with MT4:
Open an MT4 platform.
- You don’t have to actively use an MT4 platform if you don’t want to... But having an MT4 running in the background makes the use of the Calculator so much easier because MT4 is the best way for the Calculator to keep up to date with current pip values on all forex pairs based on the DDE data that MT4 can distribute.
- If you don’t already use MT4, you may open a free demo from the Metatrader4.com website. (MT5 does not offer the DDE service so the Calculator cannot use that).
On the MT4 platform choose Tools > Options.
From the Options dialog choose the first tab SERVER. On that window click on √ Enable DDE and then OK.
Now from the Forex Smart Tools Calculator, open the Settings menu & choose DDE.
In the dialog that opens, choose the first tab “Detect”
Under the Detect tab, click on the blue link: ‘Click here to check now’.
On the SETUP TAB you establish the settings for each brokerage account you wish to trade. You’ll find more details about this tab in the account section of the Knowledge Base – This is a quick overview to get you up and running quickly.
Notice that there are 4 main sections of the SETUP tab, as highlighted by the red box below:
- Account Settings
- Financial Settings
- Broker Settings
- Trade Settings
Also notice the drop down menu at the top left corner. This shows up on each tab and comes into play if you set up more than one account.
Fill in the Account Settings Box
- Enter the name of your account and its account number.
- Choose whether you will be tracking the equity of this account manually or importing it from the Trade Log, an MT4 account or the Forex Tester.
Fill in the Financial Settings Box
- Fill in the current equity of your account (you can learn more about importing this equity automatically in many cases)
- Fill in your chosen Risk Profile. This is what percentage of your account you are willing to lose on any one trade.
- Choose what currency you hold your money in with that brokerage account.
For a quick start ~ ignore the Trade Settings and Broker Settings for now and just fill in the account settings and financial settings. The following movie has a bit more detail or find in-depth information throughout the Calculator knowledge base.
Acquaint yourself with the 6 primary tabs of the Advanced Calculator, each of which is used to set up the correct position size for your trades.
Which tab you'll use depends on your own style of trading.
As you get to know the Calculator, you probably will gravitate to just using 1 or 2 of the tabs that best fit your strategies.
You can drag all the tabs into the order you want - so as you discover your favorite ones, put them where you want them.
TRADE PLAN: best for planning multi-leg trades where you might do stop-and-reverse trades or close-legged cost average positions.
BREAK EVEN: quickly access where your break even point is for stop-and-reverse trades or close-legged cost average positions.
OPEN CA: open legged cost average trades, where multiple individual trades are taken as price moves against you and held as part of an overall position.
SCALE IN: open legged cost average trades, where multiple individual trades are taken as price moves with you and held as part of an overall position.
TURBO: A super fast page for single-leg trades showing many currencies all at once. If you know your fixed stop loss (e.g. I use a 15 pip stop on the EURUSD, and 20 pips on the GBPUSD) you can instantly see your recommended position size.
QUICK: For single leg trades, quickly determine your position size and your take profit. Also great for figuring bracketing calculations.
Each kind of trade is illustrated along with the tab explanation in the Knowledge Base for the Advanced Calculator.