Forex Profit Loss Calculator Excel

A lot of traders are good at finding profitable supply and need zones, only only a few tin can identify their stop loss correctly.

A finish loss is an order that prevents you from losing money when your analysis is wrong. This is a protective order from unnecessary losses that traders apply to protect their accounts from getting a margin call.

In that location is a myth among traders that you should trade without stop losses and then that your trades don't get targeted. Wrong! It's similar maxim to a driver to drive a car without a break.

In this article, I will prove you lot exactly how I summate and place my stop loss orders when trading Supply and Demand in Forex. I will discuss 3 methods in this article, and so choose the one that you discover easy to implement.

Let's get started!

Method i: Using the distal line to place the finish loss

This is the easiest method to place your cease loss guild. The method consists of drawing your supply or demand zone, so placing your cease loss order a few pips away from your distal line.

Make sure yous accept into consideration your spread.

For example, on the nautical chart below nosotros have a demand zone around 1.19050 and 1.19636, our distal line is the i.19050 level. To identify our finish loss club, we merely accept the distal line and we add together one to iii pips and the spread to get the price level we demand for the terminate.

Our distal line is at 1.19050, we subtract 3 pips because we are buying (if information technology is a sell guild we will add three pips instead) and the spread of 2 pips:

1.19050 – 3 – two = 1.19000 which is the stop loss price (blue line).

Method 2: Boilerplate Truthful Range Indicator

This method is directly forrard, all you have to exercise is add the Average True Range (ATR) indicator on your chart and employ the ATR value to calculate your stop loss order.

On the chart below, we accept a supply zone around 0.77264-0.77776 levels. Our entry is at 0.77264 level. To summate our cease loss order, nosotros look at the ATR indicator that shows a 0.00661 value.

This value means that AUDUSD has a daily range of 66 pips. We need to put our stop loss order 66 pips away to avoid getting stop out.

So hither's how we practise information technology:

Entry price: 0.77264,

ATR: 0.00661,

Terminate loss order = 0.77264 + 0.00661 = 0.77925, and we add together the ii pip spread:

Stop loss order = 0.77925 + two = 0.77945 level.

Remember, when we accept a buy order nosotros subtract and when we take a sell society we add.

Method 3: ATR percentage using Excel

This method is for traders who employ Excel a lot and are comfortable around spreadsheets. If you are beginner, I recommend you stick with the above methods to avoid whatever confusion or mistakes.

So in this method we are using the historical data of forex pairs to summate our stop loss orders using ATR pct.

Stride 1: Go the historical information from investing.com

Since we are trading the daily nautical chart, we are getting the daily historical data from the website for AUDUSD: https://www.investing.com/currencies/

Stride 2: Calculating ATR per centum

Once we download the data, we open up the spreadsheet and we add the post-obit columns: High to Low, Daily ATR.

In High to Low column, we apply this formula to calculate the deviation between the high price and the low price:

= (D2-E2)

For the Daily ATR column, we utilise this formula to calculate the Daily ATR %:

= (SUM(G2:G3)/2)/C3

Now that nosotros take created our table and calculated our Daily ATR %, we demand to calculate the ATR% that we will use in our example.

Since we are trading the daily chart, we desire to know the cost range within the last vi days. We can change the numbers of days to suit our needs. For example, if yous want to apply it on a weekly chart, use 12 or 14 days instead.

The formula to calculate the average of 6 days is:

= Average (H2:H7)

This gives us an ATR of 0.92%.

To calculate the finish loss order to use:

Entry cost: 0.77264,

ATR%: 0.92%

Stop loss social club = 0.77264 * 0.92% = 0.00710 + 0.77264 = 0.77974,

Hither we need to add the spread, let'southward assume it's a 2 pip spread on AUDUSD:

Stop loss lodge = 0.77994 level.

Now, if nosotros compare method two and method 3 nosotros will see that the end loss levels are pretty close: 0.77945 vs. 0.77994 levels.

To download the Excel spreadsheet used in this instance:

Conclusion

Trading forex using end loss orders is a must. Traders need to protect their capitals at all time.

To avoid getting stopped out by market volatility, employ ane of the methods I discussed above to calculate the right stop loss for your position.

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Source: https://tradingfxhub.com/blog/3-methods-to-calculate-and-place-your-stop-loss-in-forex/

Posted by: fosterfromed.blogspot.com

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