What Money Management options does the software offer?
The NNFX Algo Tester offers several options for Money Management. In this section you can configure options for SL1, TP1, SL2, TP2, Trailing SL (TS), SL to BE and Risk. All options are already set to follow the NNFX strategy but you can change them if you want.
What happens when there is a valid entry?
Each entry made by the NNFX Algo Tester opens two orders (in line with the NNFX strategy). By default, the first order has SL1 and TP1 defined; the second order has only SL2 and uses the NNFX strategy rules of SL to BE and Trailing SL.
- TP1, SL1, TP2 and SL2 - You can change the targets values as you like. Take profit 1 (TP1) and stop loss 1 (SL1) refer to the first order, and take profit 2 (TP2) and stop loss 2 (SL2) are related to the second order. All values are associated with the ATR, which, of course, varies. To specify a fixed value, you can select the FIXED ATR option.
- Update Orders - The UPDATE ORDERS ONLY AT TRADING TIME option allows you to choose when orders are updated, for example you might want set this to "false" in order to adjust the Trailing SL as soon as possible rather than waiting for trading time (23:40 by default). This option works only in the Every Tick model; in the Open Prices Only model the orders are only updated when the candle opens (00:00).
- Stop Loss to Break Even - The SL TO BE option refers only to the second order. By default, SL TO BE is activated as soon as the first order reaches TP1 (ATR MULT TO ACTIVATE SL TO BE = 0). However, for the SL TO BE to be independent of the first order you can choose when you want the SL2 to be moved to Break Even by choosing the value for the ATR MULT TO ACTIVATE SL TO BE.
- Trailing Stop Loss - The TRAILING SL (TS) is also used only in the second order. It is activated as soon as the ATR MULTIPLIER TO ACTIVATE TS value is reached. After that the SL2 is placed at a distance of TS VALUE ATR MULTIPLIER from the current price, and updated whenever the distance increases by more than TS STEP ATR MULTIPLIER.
- Order Size - The order size (Lots) is calculated based on different parameters: the pair you are using, the base currency, the risk, etc. The lot size is usually different for each entry, in order to always maintain the same level of risk. If you want to use a fixed order size you can select the USE FIXED ORDER SIZE option.
- Risk - By default, the amount risked with each trade (RISK PER ENTRY) is 2% of the account balance divided equally between the two orders, that is 50% for the first order and 50% for the second order (in other words, 1% of the account balance for each order). If you do not want to open a second order, you can set the First Order Risk = 100% and the entire 2% will be used in the first order. And if you want to open only the second order you can set the First Order Risk = 0%. If you want to risk more or less than 2% of the account balance on each trade, you can change the RISK PER ENTRY value.
- NFA/FIFO Rules - The NNFX Algo Tester has two different ways to respect the NFA/FIFO rules. Using only one order with virtual targets, or using two orders with different sizes. The ONE ORDER ONLY WITH VIRTUAL TARGETS option allows you to keep the same operation and divide the risk level equally between the two orders. To respect the NFA/FIFO rules, only one order will be created but will be managed as if it were two different orders. The FORCE DIFFERENT LOTS VALUES (FIRST ORDER BIGGER) and FORCE DIFFERENT LOTS VALUES (SECOND ORDER BIGGER) option allows very similar operation but will force one order to be larger than the other. The increase will be the minimum possible for your broker (normally 0.01).
These options can be used even if you are outside the USA and FIFO rules does not apply to you.
Pro tip: Just want to open one order and not two for each entry?
If you want to open only the first order, just put the FIRST ORDER RISK = 100.
If you want to open only the second order, put FIRST ORDER RISK = 0.