Formulas & Calculations

This page is a reference for all the mathematical calculations TradeTorq uses behind Command Keys and automation engines.

Breakeven Price

The volume-weighted average entry price across all open positions in the same direction.

BE = Σ(entry_price × lot_size) ÷ Σ(lot_size)

Example

Position	Direction	Entry Price	Lot Size
#1	BUY	4490	0.02
#2	BUY	4500	0.03
#3	BUY	4510	0.01

Calculation:

BE = (4490 × 0.02 + 4500 × 0.03 + 4510 × 0.01) ÷ (0.02 + 0.03 + 0.01)
BE = (89.80 + 135.00 + 45.10) ÷ 0.06
BE = 269.90 ÷ 0.06
BE = 4498.33

Risk (in Pips)

The distance between breakeven and stop loss:

Risk = |Breakeven − Stop Loss|

Measured in the instrument's pip unit. For XAUUSD (gold), 1 pip = 0.1 price unit (10 pips = $1). For EURUSD, 1 pip = 0.0001 price unit.

Risk-Reward Take Profit

TP = Breakeven ± (Risk × RR_Ratio)

For BUY: TP = Breakeven + (Risk × Ratio) — TP above breakeven
For SELL: TP = Breakeven − (Risk × Ratio) — TP below breakeven

Example Table

With Breakeven = 4500 and SL = 4440 (Risk = 60 pips):

R:R	Calculation	TP Price	Potential Reward
1:1	4500 + (60 × 1)	4560	60 pips
1:2	4500 + (60 × 2)	4620	120 pips
1:3	4500 + (60 × 3)	4680	180 pips
1:0.5	4500 + (60 × 0.5)	4530	30 pips

SL at Profit Calculation

For BUY: SL = Breakeven + profit_pips
For SELL: SL = Breakeven − profit_pips

This guarantees at least profit_pips of profit if the stop loss is hit.

Move SL/TP — Pips Mode

For BUY SL: SL = Breakeven − offset_pips (SL below breakeven)
For SELL SL: SL = Breakeven + offset_pips (SL above breakeven)
For BUY TP: TP = Breakeven + offset_pips (TP above breakeven)
For SELL TP: TP = Breakeven − offset_pips (TP below breakeven)

Close Half — Lot Calculation

New lot size = Current lot size ÷ 2

Rounded to the broker's minimum lot step. Common lot steps:

0.01 (micro lots) — most common
0.10 (mini lots)
1.00 (standard lots)

Close Custom — Volume Calculation

Volume to close = Total volume × (percentage ÷ 100)

Distributed proportionally across all positions.

What Is a Pip?

A pip (percentage in point) is the smallest standard price movement in trading:

Instrument Type	1 Pip Equals	Example
Forex (most pairs)	0.0001	EURUSD: 1.0850 → 1.0851 = 1 pip
Forex (JPY pairs)	0.01	USDJPY: 155.50 → 155.51 = 1 pip
Gold (XAUUSD)	0.10	2650.50 → 2650.60 = 1 pip
Indices	1.0	US500: 5200 → 5201 = 1 point

Broker-specific

Pip values and point sizes vary by broker and symbol. TradeTorq automatically uses the correct pip size for your broker's specific symbol configuration.

Validation Summary

Quick reference for when Command Key actions are valid:

Action	BUY Condition	SELL Condition
SL→BE	Price > Breakeven	Price < Breakeven
SL→ENTRY	Price > Entry	Price < Entry
TP→BE	Price < Breakeven	Price > Breakeven
TP→ENTRY	Price < Entry	Price > Entry
TP R:R	SL must be set	SL must be set