CheckLeverage indicator is a simple code, the main purpose of which is to determine the real leverage of the broker.
First of all, this code will be very useful to users who use martingale sewage advisors in their trading. As you know, the bigger the broker’s leverage, the more free Margin, respectively, and the greater the “strength reserve” will be at your EA, respectively, the further distance to Margin Call.
When trading Martingale systems, the minimum recommended shoulder should be 1:400, but the more the better. Now brokers freely provide leverage 1:500 and even 1:1000, which is an undoubted plus for this trading technique. The bigger the shoulder, the more free funds.
It is also important to control the leverage of the trader with large capital. For example, with a leverage of 1:20 it is already problematic to open a sufficient number of trades, just not enough reserve of free margin.
So why constantly know the broker’s shoulder if you once identified it in account settings? It’s simple: the broker can reduce it when the conditions of providing leverage are uncomfortable for him. Possible options for reducing the broker’s shoulder:
- exceeded the maximum allowable account balance, above which it is no longer profitable for the broker to provide such a high leverage. For example, the balance was $30,000, shoulder 1:500. You found investors and the balance exceeded $100,000 – the broker changes its leverage for 1:200.
- broker against trading with an increase in the trading lot of each subsequent transaction. If you analyze your account, you show that you are using Martingale, the shoulder is cut.
- temporary shoulder reduction before the release of particularly important news. In a news column or in a newsletter, you can often see information about shoulder changes due to news that can cause strong fluctuations in markets. Not a very pleasant point, especially if you trade with a leverage of 1:200, and the broker reduces it by 10 times to 1:20.
But all such conditions should be spelled out in the contract, the above examples are simply conditions that will not necessarily be at your broker.
The formula for calculating the current leverage:
Leverage shoulder =TickValue * Bid / MarginRequired / Point
- TickValue – The size of the minimum change in the price of the instrument in the deposit currency.
- Bid is the price that the buyer of the financial instrument is willing to pay.
- MarginRequired – The amount of free funds needed to open 1 lot to buy
- Point – Item size in currency quotes
|===== Main Options =====|
|SendMassageWhenLeverageChanged||When true, the indicator sends a message to the mail about a change in the value of the shoulder. Read more about setting up a message to mail from the terminal here.
|Send Notification When Leverage Changed||Send a notification to the Meta Trader app on your phone or tablet about the leverage change.|
|AlertWhenLeverageChanged||Display alert Alert about a change of shoulder|
|Min Allow Leverage||The minimum allowable leverage value below which the indicator will inform the user of thex change.|
|===== Design Options =====|
|Lable Corner||The angle on the chart screen where the credit leverage value notification will be located|
|Lable Color||The color of the information label|