ICS: A New Mathematical Formula (Algorithm) for Lot Size Calculation

Lot size calculation is one of the global trading world's current concerns that every trader in financial markets requires to resolve their situation somehow [1][2]. Still, most common methods cannot perform in all financial markets and encounter errors (i.e., they show an output of zero instead of the lot size output, which shows a lack of optimization). The current method performs all these calculations, but its risk management model requires high-accuracy trading and calculations of possible losses for the trader. This method is recommended for large banks and financial institutes with large assets or conducting Martingale transactions. However, this method can be used for non-Martingale transactions as well. The current study does not require any mathematical proofs because it only uses simple mathematical operations, and its results were tested in financial market environments with a sample output presented later on from the Meta Trader 4 software with a low drawdown rate and high efficiency. This is a completely novel formula for calculating trade lot size in Foreign Exchange (Forex) or other financial markets with lot-size-based trade. The results of this formula were calculated with Meta Trader in a real environment with real accounts. This paper presents no mathematical proofs; it only discusses the calculation method.