The Forex Smart Tools Calculator has the features you need to understand and manage your risk – the foundation of all mastery in trading.
Risk Profile Settings for Each Of Your Accounts ~ Conveniently Set All In One Place
On the Setup tab you'll enter your equity, risk profile, and features about your charts, your broker, and your trading style preferences.
The risk profile is the percent of your account that you are willing to lose if the trade goes against you. Don't be a victim to trading in the dark and end up surprised by how much you've lost! Set this risk profile up in advance in the Calculator and use the suggested position sizes – then trade with confidence.
The Calculator also works for traders using Spread Betting brokers, showing you amount per (pip so you can monitor risk precisely with this style of trading too.
The Calculator displays your assets in the currency in which you hold your account (USD, EUR, GBP, JPY, etc.); you have the ability to add your currency wherever you live in the world.
The Calculator can read your equity directly from your MT4 account, so you don't have to manually update it after each trade completes. And you can set up many brokers and accounts independently; if you have one account that you trade more conservatively than another account, the Calculator's settings will remember this in its computations for you.
The Calculator works with the charting package you use and adapts to whether your candles show Bid, Ask or Average prices.
Choose to show your position sizes in standard lots, minis, micros or units. The Calculator figures precise lot sizes for you, based on risk profile, stop loss setting for each trade, and pip value of the currency pair.
Trading strategies such as stop-and-reverse, cost-average or a combination of these multi-leg loss-recovery techniques can be easily and precisely calculated.
If your trading style includes grouping trades in a loss-recovery strategy, such as stop-and-reverse or cost-average, or a combination of the two approaches, use the set up tab to set your money-management parameters.
Risk Profile Settings for Each Of Your Accounts ~ Conveniently Set All In One Place
What is position sizing? Knowing how large a trade you should put on to maximize your profit for that trade, while never risking more than you feel comfortable with losing. The Calculator gives you this precise number for your position size in standard lots, mini lots, micro lots, units or amount per pip - whichever setting you have chosen for each particular broker you work with.
This tab of the Calculator is ideal for traders who want to get into a trade FAST - just enter the number of pips to your stop and your correct position size is immediately shown. Your correct position size is automatically calculated by factoring in stop distance, pip value, current equity and your own risk profile.
Want to plan out a pending order? Simply enter the values that you actually see and behind the scenes, the Calculator will determine whether your entry is on the bid or ask, and give you the correct price for you to place your orders on your broker's platform.
Determine buy and sell setups together or independently – great for strategies such as straddling a channel or a consolidation band breakout trading system.
Plan the stop loss and the take profit based on a key technical level you see or a fixed number of pips.
If you use a fixed number of pips for a stop loss or take profit, the Calculator tells you what that value will look like, taking bid and ask into account. If you use a price level to set your stop loss or take profit, the Calculator switches to tell you how many pips away that value is.
Set a buffer value for how many pips beyond a visible entry point you wish to enter. For example, your trading style may be that you want to see price cross a resistance level by 5 pips before entering – simply enter 5 in the drop down menu for your "Pad Between Entry & Key Level" at the top of the tab, then enter the exact price of your resistance level. The Calculator will add or subtract that buffer, add or subtract the spread on the side that needs it, and give you the right price to input into your broker's platform when placing your order. A separate buffer value can be set for a stop loss pad too.
Plan Your Trade Before You Take It
The Trade Plan tab is the heart of the Calculator. This one straight-forward tab handles all your currency pairs and multiple trades simultaneously. As you change from one currency to another, all of your previously entered data is saved and reloaded when you come back to that currency.
You may display the chosen currency pair in either four or five digits, matching your broker's platform (two or three digits for JPY pairs).
Know the exact position size you should use to keep your maximum loss to a constant, regardless of how big your stop loss is or which currency pair you are trading. This is computed for each trade, based on your risk profile settings, the exact pip value of the currency pair you are trading, and the stop you have set. Knowing this in advance allows you to maximize your position size, without taking on more risk than you intend. It also allows you to accurately reduce your position size when a stop is larger than you ordinarily trade and still be able to take the trade with safety.
Your risk-to-reward is clearly shown per trade too, as well as the equity gain or loss you can expect to see.
Let the Calculator remember which side of bid and ask you need to be on. Depending on your trade direction, just enter the stop you actually see (such as a swing high or low, a moving average, previous support or resistance, etc.) and the Calculator will compute the value you should actually set for your stop. It will even tell you what that stop is going to look like, since half the time you may be exiting on the ask, which is not directly displayed on most charts.
Since the Calculator computes your stop loss for you, you can tell it how many pips beyond your visible technical stop area to use as a buffer, using the Stop Loss Pad settings.
Dial in your take profit goal with a handy drop down menu and see what that level will visually look like on the chart (it remembers bid and ask for you and which side of the trade you are on).
Stop & Reverse or Cost Average (Loss Recovery) Plans
If you use any loss-recovery method such as stop-and-reverse or cost-averaging, this sophisticated yet easy-to-use page of the Calculator lets you see your maximum risk potential before you put on your trades.
Plan ahead by setting out the entries and stops of all your intended legs in advance so that you can gauge your risk and decide exactly how aggressive or conservative you want to be. Even if you adjust your subsequent entry points or stops as the trade progresses, setting approximate entries and stop prices at the beginning of the trade for future legs, will help you stay within your risk parameters.
Choose the exact number of legs you wish to be displayed on the Setup tab – your display is customized to match your own preferences.
If you set the Recovery Plan to "Stop and Reverse", and set the direction of your first trade (Leg One), then all the other legs are automatically set for you (Buy > Sell > Buy > Sell, etc.). If you set the Recovery Plan to "Cost Average", and set the direction of your first trade, then all the other legs are automatically set to be the same direction (Buy > Buy > Buy, etc.). If you set the Recovery Plan to "Combo", you can manually set the direction of each leg. Simply switch to Combo if you started doing a stop-and-reverse, then at some point found that a cost-average trade would be more appropriate as the next leg.
Use the drop-down Effective Pip Goal menu to quickly see where your break even is. Your break even price is always displayed, as well as the number of pips you need to reach it.
Easy to see yellow, orange and red flag warnings appear for any leg that might place you near or over the drawdown warning level you set on the SetUp tab.
Turn alerts on or off. The Calculator receives a live data feed, so it is always monitoring current price and the built-in alerts can remind you to remove a pending order for a next leg or set a new leg if a stop is hit. Alerts are loud (yet friendly) sounds, as well as visual messages.
Plan Ahead To Scale In To Your Overall Position
The Calculator features an exact Scale-In calculation engine to let you place many levels of a trade without fear of excessive risk.
Does your trade plan call for adding on to a position as it moves in your favor? You can quickly plan your trade out to perfection with the Scale-In Calculator.
The Scale-In page gives you two options: Set up each leg manually with your lot size, entry price and stop; or use the one-click auto-configure button to plan out entry levels at regular intervals (ex., every 10 pips), in the ratio you set up (ex., 5, 4, 3, 2, 1 for five legs). See at a glance what your risk to reward will be for the aggregate set of trades.
Pull any one leg of the set of trades and see the remaining risk left on the table.
Cost Averaging – Another Smart Way To Enter A Trade
The Open Leg Cost Average tab is designed for traders who hold an overall position consisting of several trades at different entry points.
Here's an example: You went long the EURJPY and price moved against you – but not enough to stop you out. It then sets up at a lower price that still looks good for a buy and you place a second long trade, without having closed out your first trade. Both are still open. This is called 'open-leg cost averaging'.
Where is your break even price for this combined trade? Depending on your lot sizes for each leg (i.e., each trade order), it is somewhere between the two positions, and is shown on the Calculator as your break even price. This is also known as the 'average open price' for the combined trades.
If you continue to open additional trades within this set or group, you can dynamically add more legs as you need them.
If you place one stop loss to govern all the open trades, you can enter that price to see your potential drawdown. If you plan to use independent stop losses for each leg, you would instead use the Trade Plan tab of the Calculator to chart the profit and loss potential for that particular set of trades.
Once you know your exit, enter the actual price to quickly see your net effective pips, net profit or loss, and overall equity change.
Never Get Caught – Monitor Your Total Exposure
What's the difference between an inexperienced trader and a seasoned professional?
New traders always think in terms of how much money they stand to make in a trade. Professional traders always think in terms of how much money they stand to lose in a trade – that's the difference.
Professional traders manage their overall risk to achieve long-term success.
New traders ignore risk in their quest for immediate profit and are quickly chewed up and spit out by the forex markets.
The Calculator gives you the tools to monitor your risks like a pro. First quickly set up the particulars about your individual trades on the Trade Plan tab, then come to this tab to see how much risk you have at stake. Choose the currency pair of your open trades and decide how many legs you would allow that particular trade to go.
Dynamically add additional trades as you need them by using the drop down menus under the "New" category.
Easily close any one order by clicking its order number in the title bar (e.g., click "TWO" to show the second trade is now closed).
See how much gain is required to recover from a potential drawdown. As an example, a drawdown of 35.9% requires 55.9% gain for recovery.
This tab answers the question: "What would happen to my account if something happened in the market that suddenly turned all my trades against me and stopped me out?" And as you know, anything can happen in forex at any time.
See Live Pip Values & Currency Rates
The Currency Rates tab is the interface between the Calculator and your forex broker, showing live price feeds and pip values.
Connect to live price information via DDE. Simply use your MT4 broker (or set up a free demo MT4) to bring prices into the Calculator and everything else is automatically set up for you.
Pick which currency pairs you want to show in all the drop-down menus throughout the Calculator. This allows you to show only those pairs you normally trade, keeping the options simple and fast to read.
Yellow highlighted values show you recent changes in price.
Present-time pip values of all currency pairs are easily viewed.
Manage the alerts which you have set on the Trade Plan tab for your loss-recovery trades.
Choose whether to use live data or manually input spreads and price for each currency pair. This is useful for backtesting, working offline or if you use multiple brokers with different spreads.
The Calculator is built with a custom DDE interface so system-resources are minimally used.
From some of our Forex Smart Tools users...
"Thanks for you thorough and clear explanations! I must say your recorded material is as good as any out there – actually head and shoulders above the rest. I have been trading since the 70's and have seen it all and then some. EXCELLENTLY DONE! And this is under-stating the quality of your work! After so many years of sifting through endless useless crap, it is a real joy to find your product. I hope you are getting the word out about your product. It should be a smashing success. I have used most of what you cover for years, but now it's going to be easy! I'm a very happy camper."
~ John S.
"The Trade Log and the Calculator are both fantastic tools. I have just turned a corner in my trading last week with my analysis and my results, mainly because I have started putting all my trade plans down in the Calculator and Trade Log before price got to my level, before that I was only entering them after. That way when price came into my zone I was ready to pounce, having all the information I needed right there, and felt SO much more confident (plus makes doing the result much easier too since you already have the info in there). I have you both to thank for creating them! Wonderful, and keep up the great work!" ~ Brendan M
"Thank you for the Calculator...it is a tremendous aid and your wisdom on risk has been a MAJOR help to me. In the last month I had small wins that would have been 3 to 5 times larger had I used adaptive position sizing as you show in your videos. I had a couple of losing trades at 3.67% that I closed early anticipating a greater loss. Bottom line: had I used the Calculator with adaptive position sizing, I would have stuck with my original trading plan, knowing I was making more profit per pip, and would not have worried about losers because they would have been only 2%. I am now trading so much better." ~ David M.
Common Questions About The Calculator