A clear guide so you and your students know exactly what’s being shown and why it matters.
🎯 What This Calculator Estimates
PnL at a target “MoveUSD” after the last hedge is placed. It tells you, for each hedge depth H1 → H5, what profit you’d expect if price moves in your favor by MoveUSD from that last entry.
🧱 Key Assumptions (same as your tool)
Instrument: XAUUSD
Value per $1 move: ≈ $100 per 1.0 lot
Base lot: 0.01 (so ≈ $1 per $1 move)
Anchor direction: SELL (results are symmetric)
Alternating hedges: directions alternate Buy/Sell with spacing Δ
H3 uplift: at H3 the lot is multiplied by your H3 Uplift (default 1.125)
⚙️ Inputs
Field
Meaning
Δ (Interval)
Price distance (USD) between each hedge
MoveUSD
Favorable move (USD) measured from the last hedge
Hedge Boost (×)
Lot multiplier per level (e.g., 2.0 doubles each level)
H3 Uplift (×)
Extra multiplier applied to the H3 lot only
🧮 How the PnL Is Computed (concept)
Build the hedge chain: Level 0 is the anchor (SELL). Each new level alternates direction, spaced by Δ. Lot sizes grow by Boost each step; H3 lot is additionally × H3 Uplift.
Baseline at last hedge: compute cumulative PnL if price is exactly at the last hedge price → that’s g₀.
Find net slope: absolute net lot × $100 per $1 per 1.0 lot = PnL change per +$1 from the last hedge.
Larger Boost / more hedges increase both potential PnL and drawdown risk.
For planning and teaching only; not execution guarantees.
✅ Summary
Shows expected PnL at +MoveUSD from the last hedge for H1→H5.
Uses your exact chain rules (alternating hedges, Boost, H3 uplift).
Stress-test spacing (Δ), aggressiveness (Boost), and target move (MoveUSD).
🧮 Understanding Margin and the Hedge Margin Calculator
Great! Let’s break it down so you and your students fully understand how margin works, how this calculator behaves, and how it relates to hedging with increasing lot sizes (Buy/Sell alternation).
🔍 What Is Margin in Trading?
Margin is the amount of money required by your broker to open and hold a position. Think of it like a security deposit — not the cost of the trade, but a portion your broker holds while you're in the trade.
Leverage: e.g., 1:100 means you only need 1% margin
⚙️ How This Calculator Works
Field
Meaning
Anchor Lot Size
Lot size of your first trade
Multiplier
Each hedge position increases in size (e.g. 3×)
Hedge Levels
How many levels of hedging to simulate (Buy/Sell). Excludes the anchor; Level 0 is the anchor.
Leverage
Account leverage (e.g. 1:100)
Gold Price
Current market price of XAUUSD
✅ Example
With Anchor Lot = 0.1, Multiplier = 3, Hedge Levels = 3, Leverage = 1:100, Gold Price = $3350:
Level
Direction
Lot Size
Price
Margin Required
0
Buy
0.10
$3350
$335
1
Sell
0.30
$3350
$1005
2
Buy
0.90
$3350
$3015
3
Sell
2.70
$3350
$9045
Total Margin = $13,400
Note: Direction (Buy/Sell) alternates, but margin depends only on size and price.
💡 Why Use Increasing Lots in Hedge?
This is a martingale / multiplier hedge approach: as price moves against you, you add bigger counter-trades.
A small retracement can recover all losses and close in profit.
BUT…
📈 Margin requirements increase fast
🧨 Risk of margin call rises quickly
⚠️ Why the Current Price Matters
Gold price directly affects margin. If gold is $2000 → lower margin; if gold is $3500 → much higher margin. That’s why the calculator lets you input real-time price.
✅ Summary
Lot sizes increase with each hedge level using the multiplier
Margin = amount needed to open and hold each trade
The calculator totals all margin across all hedge trades
Current price is editable for real-time accuracy
Direction is for display only — margin depends on lot & price