Skills for running an algorithm properly
A backtesting primer, a position-sizing calculator you can actually use, and straight answers to the MQL5 and EA questions we get asked the most.
Backtesting Guide
How to read a backtest without fooling yourself
A proper backtesting workflow is what separates a strategy that's genuinely robust from one that's just been tuned to look good on old data.
This guide is for Premium members
We're building a full, step-by-step walkthrough on reading strategy-tester reports, spotting curve-fitted equity curves, and stress-testing an EA before it ever touches a live account. It'll unlock here for Premium members once it's ready.
- Reading modelling quality & spread accuracy
- Spotting a curve-fitted equity curve
- Out-of-sample & walk-forward testing
- Stress-testing across different market regimes
- Turning a backtest into a live-forward checklist
Already have a backtest you'd like a second pair of eyes on? Book a call and we'll walk through it together in the meantime.
Risk Management
Work out your position size before you place the trade
Risk management starts with one question: at this account size, this stop-loss distance, and this % risk, how many lots should you actually be trading? Use the calculator below, or scan the quick-reference chart underneath it.
What position sizing actually means
Risk management isn't really about avoiding losses — every strategy loses sometimes. It's about controlling how much any single loss costs you. That means working backwards: you decide the amount you're willing to risk first, and the lot size falls out of that math. Picking a lot size first and hoping it works out is the wrong direction.
The 1–2% rule
A common guideline is to risk no more than 1–2% of the account on any single trade. It sounds conservative, but the math is why it holds up: ten losing trades in a row at 2% risk costs roughly 18% of the account. The same ten losses at 5% risk costs closer to 40% — and a 40% hole needs a 67% gain just to get back to even.
Where "distance" comes from
The stop-loss distance shouldn't be picked to hit a target lot size — it should come from the chart itself: the nearest swing high or low, a recent range, or a volatility measure like ATR. Typical ranges vary a lot by style — scalping often sits around 5–15 pips, intraday swing trades around 20–50 pips, and position trades 50–150+ pips — but the chart should decide the number, and the calculator below just converts whatever distance you land on into the right lot size.
This calculator assumes a fixed pip value for planning purposes — actual pip value depends on the pair, your account currency, and your broker's contract size. Treat it as a starting point, not exact broker math.
FAQ
Forex robot & MQL5 questions, answered plainly
The questions we hear most often about Expert Advisors, MQL5, and how the pieces fit together.