Max lots before a breach
Result
25.00 lots
- The rule that binds
- The daily loss limit
- Loss at that size
- $5,000.00
Not investment advice
Max lots = the smaller allowance in dollars ÷ (stop in pips × pip value per lot)
With your numbers: $5,000.00 ÷ (20 pips × $10.00) = 25.00 lots
How it works
The calculator takes the smaller of your daily allowance and what is left of your total drawdown, in dollars, and divides it by what one lot loses at your stop. That is the size at which one ordinary stop-out lands exactly on the tighter limit, and it names which rule is the ceiling.
Questions
Should I trade the size it shows?
No. The figure is a ceiling, not a target: at that size one loss uses the whole allowance. It is there so you know how far below it your normal size sits.
Why does it ask for the drawdown left rather than the limit?
Because the allowance shrinks as you use it. After a losing week the same rule leaves less room, and the honest ceiling comes from what is left, not from the number in the rules.
Which limit usually binds?
Early on the daily limit is usually tighter. Deep in a drawdown, what is left of the total takes over. The calculator says which one binds for your numbers.