 Hi, everyone. I've just opened up the webinar. We're still a couple of minutes away from the start. I'll mute myself in the meantime. We'll wait for everyone to join. Hello, everyone. We're still going to give it a few more minutes. I still see people joining right now. So let's start in about two minutes. Okay. Hi, everyone. I hope you can see me and hear me. Please just, if you could acknowledge that for me, that would be really great. Then I know that you can see me, hear me actually on three things and you can see my screen, which right now has a high-risk warning. Can I get confirmation from anyone on that? Wonderful. Thank you for that. Okay, good. And you can see, and thank you, Mohammed, and you can also see my screen, right? Maybe you can't see my screen. You should be able to. Can anyone see my screen? Yes, you can. Okay, good. Thank you. All right. Hello, everyone. Welcome to our third and last webinar in the series. Man, this is probably the most important webinar in the series. If not the most important webinar you'll ever attend. So I'm glad that you joined us. It's about risk management. And before we get going, let's quickly make all the lawyers happy and have a look at the disclaimer. Trading CFDs on margin carries a high level of risk and may not be suitable for all investors before deciding to trade contracts for difference. You should carefully consider your trading objectives, level of experience and risk appetite. It is possible if you just sustained losses that exceed your invested capital and therefore you should not deposit money that you cannot afford to lose. Please ensure you fully understand the risks and take appropriate care to manage your risk. Thank you for that. And that is exactly what we're going to be talking about today, is about risk management. So we are going to be using the Autochartist Risk Calculator to do risk management. And you can see that under the indicators section of your meditator, something called Autochartist Risk Management. We have gone through this before in other webinars. If you want to know how to get the Autochartist tool, it's quite easy. You click on client tools, Autochartist, and you scroll down until you get the install empty for plugin. And you can install the empty for plugin. Once you go through those steps, you will get the Autochartist Risk Calculator and the Autochartist Market Scanner on your Metatrader. We're going to be talking about the Autochartist Risk Calculator today, but it's dependent on some data which is downloaded by the expert advisors. The first thing you got to do is just drag and drop the EA onto your chart. It downloads a whole bunch of data that we need and I'll show you why in just a moment. And then you can go ahead and close that and use the Risk Calculator alone on its own. Now, the Risk Calculator is not dependent whatsoever on the Autochartist Market Scanner. You can use it independently and you can use it using whatever technical, fundamental, macroeconomic, whatever indicator that you want. You can use it in conjunction with any other strategy that you want to use it with. Okay, so don't think that it's joined to the Market Scanner in any way. In fact today I'm specifically going to be using it without the Market Scanner and I'm just going to be guessing at a whole bunch of market directions as well. I see there's already some questions coming through and I'm just going to give my little presentation for a few minutes and then I'll get back to the Q&A. So it's quite difficult for me to monitor both screens in terms of Q&A and the presentation. So risk management in trading CFDs or any over-the-counter instrument is extremely complicated. I'll start with a simple example. If we're looking at Euro-USD, we're looking at trading Euro-USD, we know that every PIP in movement is worth 10 bucks. We're trading on a standard account and a standard lot is obviously $100,000 exposure on the market. Now if you're using a mini account then every PIP is worth $1. In fact any USD as the base currency is always worth either $10 a PIP on a standard account or $1 on a mini account. For example that Euro-USD, GBP-USD or USD, anything that's a base USD is always a dollar PIP or $10 a PIP. But a lot of the time you don't trade simply base USD currencies. For example, if you're trading USD Swiss franc, the base currency for USD Swiss franc is actually Swiss franc, not USD. In which case the value of a PIP is not $10, it's something different. And if you're trading USD CAD, also the value of a PIP is not $10. I'm not going to go through the arithmetic of actually working out what a PIP is worth in this presentation, but it gets a lot more complicated. If you're trading something like GBP-JPY, the calculation is even more complex because you need to work out what GBP-USD is and then USD-JPY is and then you multiply the two. I'm not going to go into the arithmetic and you get what the value of the PIP is worth for GBP-JPY. So it can get pretty scary. And when you're trading on MetaTrader and you're setting stop losses and take profits, you're setting them at levels, but you're not actually quite sure how much money you're risking. And actual dollars in your account, how much it is that you're risking. So if, for example, we're trading Euro-USD, let's switch to an hourly chart. Let's make it a little bit more exciting, right? If we're trading Euro-USD on an hourly chart and the current price is, look at it, $1,850, let's just say, $1,850. And I want to set my, if I want to go short and then when I set my stop loss at $1,867, I know that it's a 12 PIP stop loss. And that's if I'm going short, of course. And so I know that's very easy on a standard account, that's $120 of risk, right, that I'm actually trading. But then the question comes in, okay, yeah, sure, I have a $50,000 test account, but I don't want to risk $120. It's not worth it for me on a $50,000 account, right? Or it could be the opposite situation where you only have $1,000 in your account. You can't go ahead and risk $120 of your $1,000. There's no way you should be risking 12% of your capital on a single trade, right? It doesn't make sense. So if you're, let's say, got $1,000 in your account, there's no way you should be trading one lot, you know, on this. That would be an insane amount of risk to take of $120 on this position. So what traders end up doing is they end up trying to move their stop losses in order to fit in with a risk profile. Let me zoom in and show you what I mean by that. So let's say I only want to risk $50, right? Then what I would look at is a five-perp stop loss. So does that mean I need to set my stop loss around here? That would be absolutely ludicrous. Let's say I want to go short. I mean, the euro is going to hit this level within five minutes, man. I mean, a five-perp stop loss. It doesn't make sense to trade a five-perp stop loss. What do you do? Walk away from this trade? That would be a really, really silly thing to do. Now, this is the problem with the misconception that traders have around stop losses. The idea around stop losses is not to change your stop loss depending on your risk level. You should set your stop loss dependent on market volatility and market conditions. And when you believe that from a perspective of your trading strategy, you have made the wrong call. So if I had to choose a stop loss, if you had to force me to go short on your USD right now and I had to set a stop loss, I would set it where I've drawn the red line now. Why? Because I can see that this is kind of where the previous turning point was. And if it goes through that point, then I think I've made the wrong decision. But again now, I'm back in a spiral, right? But now, again, I'm risking from what is it, 1850 to 18... So I'm risking 12 pips again, but I'm back at $120. So the idea now is to change the position size. So if I only want to risk... On 12 pips, I only want to risk 60 bucks, I would trade 0.5. Does that make sense to you? So instead of trading one lot, I would trade half a lot. If I want to only trade, let's say 30 bucks, I would trade 0.25. That would give me a $25 risk on this $12 or $30 risk approximately on this trade. So I'm trying to give you a hint about how a professional trader looks at their trades from a risk management perspective. It gets more interesting. So let's just say that I want to go long, right? Because I'm a trend trader. And I want to set my stop-loss over here at $1,820. It's now $1,847. That's a $27 per stop. If I trade a single lot, I am risking 270 bucks. If I don't want to risk 270 bucks, what do I do? And the answer is no, I do not move my stop-loss. What I do is I change my position size. So instead of trading one lot on this, if I want to let's say risk $135, I would trade 0.5. If I want to trade a quarter of that, I'll trade 0.25. But this is easy to do with your USD because every purpose worth 10 bucks. So that's really, really simple. So what's the big deal here? You're asking, let's look at Swiss Frank. Can anyone in this audience, and I can't even do it in my head, can anyone tell me what my, if I want to go long on USD Swiss Frank? This is, let me see the numbers here. This is a 12-pip stop-loss. What my dollar risk is on this? I'm not going to work it out in my head, right? And I certainly don't want to go to a risk calculator online to have to work this out. And so this is where the order chart's risk calculator comes in. So let me show you what it looks like. So if we drag and drop the risk calculator onto the chart, we immediately get a orange line on our chart. And that orange line can be used for us to tell the risk calculator where we're thinking of setting our stop-loss. Okay, so if I move this thing around, let's say I want to set it here. At this level over here. And then you can see that stop-loss has changed. And I want to risk $50 on my, I want to actually risk $50. Then the risk calculator is telling me, Ilan, set your volume to be 0.78. So if I'm trading here and I want to trade with this stop-loss. I should trade a position of 0.78 if I only want to risk $50 of my account. Okay, let's change this to announce round number. Let's make it $100. But if I want to risk $100, that means I should set my position to be 1.44. Let's look at the other way around. Let's say I want to go short. And I want to set my stop-loss up here at this level at 0.90.71. What position do I need to set if I want to go short? Notice how my volume has changed because obviously the size of my stop-loss from the current market price has changed dramatically. It's up to 30 pips instead of 6 pips. And so it's telling me to set my volume to be 0.3. I hope we're all together on this. So the risk calculator is actually telling me what the volume should be. And again, I want to highlight this very, very important fact. Don't move your stop-loss around to manage your risk. Set your stop-loss where you believe the price, where the limit areas are of your trading system. And then set change your position size to tell you to manage your risk. So let's go ahead and actually place a few trades. What do you all say? Let's go ahead and do that. Let's go back to a daily chart. And I want to come up with a nice little portfolio of positions increasing in complexity. So you can follow what I'm doing. So let's drag and drop the risk calculator. Who thinks I'm going to go long? Yeah, let's go long on Euro-USD. And let's set my stop-loss at this level over here because I see it's a nice support level. Okay, so I want to go long on Euro-USD and I want to risk $100. Now this is the daily chart. So this is an absolutely massive amount of pips, 160 pips. So it's actually telling me only risk as a trader volume of 0.06. In fact, let me make this $1,000. So I'll make it a more reasonable amount of dollars. So I'm going to set my stop-loss at this price over here. And I'm going to set my position to be 0.6. And I'm going to buy it market. Okay, so I've got one position open on a daily chart on Euro-USD. Let's try now, make it one step more complex. Let's look at USDJPY. Okay, I'm going to remove this. I'll talk about that later. I want to go short on USDJPY and set my stop-loss at 0.066 with a risk of $122. I want to risk $1,000. Note my position size now, right? So if I want to set my stop-loss here, my position size needs to be 0.86. Notice what I've done. I've opened one position on Euro-USD long with, I think it was 170 pips of risk. Another position on USDJPY short with 123 pips in risk. But in both of those, I've risked the same amount of money, okay? I've only risked $1,000 of my equity, right? Which is about 2% of my equity, right? So let me make it even more complex. Let's switch to an hourly chart and trade a cross-rate Euro-GVP. Okay, I want to set a cross-rate of Euro-GVP and I want to set my stop-loss at 7 pips away. That's 7 pips away, really, really short-term position. And I want to risk $1,000, right? A maximum of $1,000. I should set a position of 10 lots, right? So let's have a look at what that looks like. So if I'm trading $1,000 and I want to set my stop-loss at this price over here, I should set my position at 14.17 by, this is an extreme trade. Okay, let's see. That's super risky, okay? But now I've opened three different positions. One on a Euro-USD daily chart. One on USDJPY daily chart. Okay, so the PIP value is different. One on Euro-GVP hourly chart with a tiny little risk in pips, right? Only five pips in risk. The others were 100 pips and another one was, or 170, another one was 122. And notice though, in all of them, I've only risked $1,000, right? Okay, so obviously, as a percentage of my equity, that's really, really small, right? It's only 2% of my equity. We can make the numbers more realistic if we like. Let's look at something like GBPJPY, which is obviously a GBPJPY. If any of you trade that, that is the killer of all traders, right? So let's trade GBPJPY with a stop-loss around this level over here, 66 pips away. I want to go long, risking $1,000. I want to go long on that. Let me set my stop-loss to be here and my volume to be 1.6, and I'll buy it market. Okay, cool. So now I'm in the market on four different positions across four different timeframes, right? Yet again, I've only risked $1,000, right? So this is extremely, extremely powerful. I hope you all are appreciating the power of this tool. You can also set your position as a risk of equity or as a percentage of equity or percentage of balance. I hope you both know or understand what the difference is between equity and balance, right? So balance is the amount of money you actually have in your portfolio. Equity is obviously your equity including your open positions, right? So it's two completely different things, but you can also just look at it from a pure dollar's perspective. If your account is not in USD, mine is in USD, but if it's not in USD, then your risk amount will adjust to your account. So if you've got a euro account or an Australian dollar account, then the risk calculator will change its risk to show you that in your account currency, right? Which I think is quite a useful feature. Okay. Now, I'm in the market and I'm watching, I was up 200 bucks a moment ago. Now I'm down 200 bucks. It's that extreme position. I took a 14.17 lots. That's a bit of a crazy position size. But look, I am trading with a $50,000 account. But yeah, certainly massive swings in the market and we're probably going to get that stop loss hit in just a moment. Yeah, we've got a hit. Okay, so we were down some cash. That was obviously an extreme position to take. Okay, but we're up on all our other positions. Now, let's go ahead and get a little bit more complex when we're trading, right? So now let's choose a different currency pair. If any of you have anything else that you want to trade right now, let me know. Send that into my chat and we'll actually trade whatever you want. Any recommendations for something to trade? I want to trade either a limit or a stop order right now and show you how that works. Okay, no recommendations. Let's choose the really obscure one, Swiss Frank JPY. All right, let's see what that looks like. Okay, so I'm looking at Swiss Frank JPY and what I want to do... Oh, I've got some stuff coming through here. GBPUSD. Okay, GBPUSD. Let's trade GBPUSD. Where is my GBPUSD? All right, GBPUSD. Okay, let's check this out. Oh my God, look at that thing rocket. Okay. That's actually an interesting example. All right, so what I want to do is I, let's say, want to set a sell stop order. I want to try a stop order and I want my stop order to enter at this price over here. Right, so as you can see what I've done is I have ticked my custom entry price and I click that and a green line appears. Right, so what I'm doing is I'm dragging my green line to where I want to enter the market. And in this situation, I want to set a sell stop, which means that if the price comes down through this level, then I'll take a short position. Okay. So I'm setting a sell stop. Then I move my stop plus level to where I think the stop needs to be. Okay, let's say over here, right. So now the risk calculator calculates my risk not between the current price and the stop loss, but between the open my opening price, which is the green line and the and the and the orange line. Right, so now what I can do is what would my order look like. I would say it's, it's obviously a pending order. It's a sell stop. Well, I want to risk $1,000 on this thing right so my volume. Actually, let me set the price first so my custom entry price would be over here. My stop loss would be over here. And then my volume would be 2.47. Oh, what did my price disappear. There we go. So now what I've done is, if my you can see I've got this pending order over here. If my price hits my green line, right, that means if pound, if the pound turns around, it's my green level, it'll open a short position and set my stop loss at this orange line. And again, I'm only risking $1,000. Oh, why did I put $1,090? That was really stupid of me. There we go. $1,090. Okay, close enough. All right, for demonstration purposes. I actually liked that other example on that cat was it a CAD notice for Swiss rank JPY that I wanted to trade at. Yeah, I quite like this one, because it's heading down and let's see if it'll, it's on an hourly chart. Let's see something more short term, something that might actually hit. Let's try and trade the bounce. Okay, let's try and trade. Oh, yeah, this is going to be a pretty cool one. Let's hope this hits. Okay, so let's try and trade a buy limit, right? Does everyone know what a buy limit is? A buy limit means if it hits the green line, then we take a long position. Okay, so if it hits the green line crosses it, then we take a long position, assuming it's going to, it's going to go up. Right. So now we, we set my, I set my green line that way I want my price to my entry price to be. I set my orange line to be, let's say, over here, that's when I admit I've made the wrong decision. Okay, so let's see what that looks like. Okay, so I would set a buy limit, a pending order with a buy limit. Okay, cool. My volume should be again, it should be $1,000, which is insane. I'm not going to risk $1,000 in the short term trade. I'm going to risk $1.31, which is just $100 of risk with a stop loss at the orange level. Right. I'm going to set my entry price to be at this level over here and I would place. Okay, so let's see what happens. Right. So what's, what should happen in the next few moments is, is this, this trade over here that I've highlighted the buy limit. If Swiss Franc Yen, if a Swiss Yen hits this green line, I should be entered into the market with a long position and of course my stop loss will be at 115. But again, what is the beauty about this is that I'm trading a 15 minute chart with some obscure cross rates Swiss Franc Yen. Okay, God help me if I can work the value out for that. That rate in my head. Okay, I'd have to be an arithmetic genius or get my 11 year old to come and do some, some little fractions for me. And then, but yet I know how many dollars I've actually risked. Okay, so let's see if that happens. Oh, come on, come on, come on, come on, come on. I'm, I'm praying this hit so we can actually see a live example of a pending order coming through so risky to do this on a live webinar, hoping the position will hit. Anyway, in the meantime, while we're while we're working on that. I'm going to remove that custom entry price. I want to show you another super cool feature of this tool. You could get if you can get even cooler than what it is already. And that's the little thing called a show expected trading ranges. Okay, so now, if I do show expected trading ranges what you will notice is a whole bunch of lines coming up on the right hand side, let me untick that and then retick that again, so that you can all see what I'm what I'm talking about. So this is more of a lifestyle tool, I would say that in that it tells you what we can expect from a trading range perspective on Swiss Frank yen. So what I'm saying is that we expect this to trade in this range in the next 15 minutes with this range in the next 30 minutes. So this range in the next four hours. Oh, sorry, one hour. Oh, that was the one hour range. Sorry. And then the four hour range is down here and then the next 24 hour range at somewhere off my screen. Okay, so it's actually telling me what my potential price ranges are. Oh, and you can see my position was just hit, which is awesome. So now I'm hoping that this thing bounces. Right. Okay, so sorry, I get distracted for just a moment. Right. So it's really a lifestyle tool, right. So for example, I'm busy in a webinar for you now but but let's say my wife is busy getting the kids ready normally I take the kids to school. I was out there with my kids trying to get them ready for school. I wouldn't be trading a 15 minute chart with these kind of stop levels right and the reason why is because if I expect the stop level to hit if it does hit right if I made the wrong decision. If it does hit all hit in the next 15 minutes you can see it's within the next 15 minutes trading range. And I'm supposed to be outside taking my kids to school preparing breakfast for them and lunchboxes and all kinds of stuff. I shouldn't be trading this kind of range so right when if if I was taking doing the stuff at home, I would be setting my stop level this is way out right in the hourly range in the for hourly range, knowing that I have all these responsibilities at home that I need to take care of. Right. So, this is important. Okay, so when you, when you change to a different chart let's say the M 30 chart. What you'll see is that we only show the, the ranges from that time interval right so we don't show the 15 minute range we show the 30 minute range hourly range and for hourly range and then obviously the 24 hourly range is somewhere off my off my screen. If I then flip to a hourly chart, you'll see that I have the hourly range and four hourly range and the 24 hourly range. And if I go to the four hour, you know obviously get the four hour and 24 hour. And if I'm looking at a daily chart and obviously I would only get the daily trading range for myself right because we assume I'm trading the the much longer, the much longer timeframe. But again, I'm flipping across to my, to my position over here. Now, I'm really really hoping for demonstration purposes, but this stop loss hits, because I want to prove to you. Right, how we've only risked 100 bucks on my position. And you can see it's kind of relevant I was kind of midway through excuse my dog barking in the background, the wonders of COVID and working from home right. So, you can see it was kind of moving towards that level, you get a general idea of the numbers that I set my position here. And that's what the money of risk of course, there's sometimes a situations where you know there's a market slippage you might not get executed exactly that price. The market isn't at whatever my stop plus level is maybe there wasn't an execution at 115809. The next process 115808, you know, so you might get get slipped a little bit, because it just wasn't a counterparty at 115809. But, but in general, this is a very, very good indication of how much money you've actually risked on this on this trade. Cool. So, I'm going to leave this, this loot this this one position open I want to close the rest of them in in profit. Okay, a good day obviously I took that crazy 1010 lot position earlier, which made me maybe lose a bit of money but obviously that's not something you would do in a real trading scenario I'm going to leave this one open in hopes that I hit my stop loss. I know it's crazy to think that I want to lose money. This is a demo account, but I want to hit my stop loss so that I can actually show you how we've only risked 100 bucks on this trade. In the meantime, I've already spoken for about 30 minutes and reached the end of the webinar. So I want to go to the Q&A. Okay, let's see. So I have a question from I'll be back. Let me read that a high minimum property drop down listen phone feature. I'm not showing them. Okay, I'll be by it is actually asking a question about the auto charters. Market scanner. He's saying that the. Oh, and I'm not getting an either. I'm not getting a little. Abibat looks like I'm suffering from the same bug you're suffering from. So let me tell everyone, it's a bit unrelated to this webinar about answer anyway, and they're supposed to be two additional features over here. A drop down filter for minimum probability and a little cell phone icon for access to our mobile application. That is a bit weird. Abibat. I am going to report this to my support department. If you want to response on that. Won't you, won't you please send an email to support at auto charters.com asking that question. We will get back to you on that. So sorry about that looks like I'm suffering from the same problem you're suffering from maybe there was a setting misconfiguration on our side. But yeah, you should definitely see that. Okay. So then I have a whole bunch of Mohammed is enjoying the live action. Good. Oh, wow. Okay, I have that I will have a look at that if you can privately send me your email address from which you sent that request, I will make sure that someone gets back to you before the end of the day today. If you can send that to me privately, I'll make sure that you get a response on that. Not quite sure what happened with that. Okay, so. Okay, I've got a few requests to trade euro, euro Kiwi. Okay, let's see what euro Kiwi looks like. Do we have your Kiwi on my, on my list. Oh, I do. I have it on my list. Let's see what euro Kiwi looks like right now. It looks like it's trending down short term. Trending down slightly longer. Trending down trending. Oh my gosh. Yeah. Okay, let's trade euro Kiwi. So what would I do in your Kiwi right now depends on short term you want to go let's trade the hourly chart it'll maybe a little bit more reasonable. Let's trade euro Kiwi right now over here. What I would do is potentially go short. Over here, I like that consolidation over here at this level here trade risk $1000 at 1.1.7 in risk. And I would sell at market. That's how I would have traded a euro Kiwi now on the hourly chart. I think there's more to take into consideration. If you look at the daily chart on euro Kiwi potential trend upwards interestingly enough. So you might want to take a different kind of position on the bullish side. If you're trending a longer term position you might want to trend by go long here with a very large stop loss around 206 at the previous long term support level. You can see that support level very strongly over here here here here breakthrough here it was resistance here against support over here very very important level. An interesting trade to trade take care or maybe some kind of very long term by limit for a bounce over here. Also very interesting position to take on on that. Yeah, nice nice choice. Who was that that recommended. That was Ron. I run interesting one to look at. I wonder how you pick that one out your NZD. I want to I want to see what if auto charter says something about your NZD quickly. Still busy. The whole bunch of stuff on Euro and nothing Euro NZD. There it is. Oh, so we identified something a while back a bit of a it almost hit our take profit. And then it turned around so yeah there's definitely something happening on on Euro NZD very interesting one Ron keep an eye out for that I think some definite very interesting support resistance levels here certainly breakout through resistance over here right now potentially long. I think I went when the wrong way didn't look at the charts with enough enough detail on on that one definitely. Okay. My email is there is my email. I'll be back. You can email me directly with your request. I'll find what's going on. Okay, so with that having said that trading randomly. I hope you all enjoyed all the random trades that are placed and learn something again by the way this tool is free of charge right so no one's trying to pitch you anything or sell you anything. Just if you have a live account to tick more this this this tool is free of charge go ahead download it play around with it. I'm really hoping it saves you a lot of money don't risk 1520% of your equity on a trade you should be risking 225% at most on every single trade. I hope the risk calculator helps you with with your risk management. This will be this webinar will be available for download probably the next day or two once they erase all the stuff at the front and all the stuff at the back. And yeah, that's it. Yeah, we'll have it will Ali will have this webinar recording up for you probably by tomorrow or the next day. You'll get an email from from from them from from tick more with the recording link. Thank you everyone for your attention. I've hoped you enjoyed it. Thank you Mohammed for the compliments. Very, very kind of you. I appreciate it. Mohammed complimented me for an amazing webinar. I'm not sure if it was amazing, but anyway, I hope I help you manage your risk. Good. Thanks everyone. Have a good day or a good evening wherever you are in the world.