Hi i have failed to understand these trader contest rules can some one please explain the following with examples thanks .Take profit and Stop Loss levels should not exceed 2% from the opening price for EUR/USD. Limits for the rest instruments recalculating each settlement according to "Pip Conversion Schedule". E.g. Limits for AUD/JPY=(EUR/USD Points/AUD/JPY Points)*2%=1/1.74*2=1.15%; for EUR/NOK=(EUR/USD Points/EUR/NOK Points)*2%=1/0.17*2=11.76%, etc.
You don't have to calculate SL/TP limits yourself. When you open orders, contest platform notifies you if your SL/TP levels are too far. You can then readjust them.
But since you asked how are those limits calculated, here's an explanation.
General formula: EURUSD_Points / XXXYYY_Points * 2%
You take EURUSD_Points and XXXYYY_Points from "Pip Conversion Schedule" table (column "Points"), which is listed on Trader Contest rules page: https://www.dukascopy.com/tradercontest/?action=contestrules
EURUSD_Points is always 1, so the above formula can be simplifed: 1 / XXXYYY_Points * 2%
Example 1 (AUD/JPY):
1 / 1.36 * 2% = 1.47%
Example 2 (EUR/NOK):
1 / 0.12 * 2% = 16.67%
Example 3 (GBP/JPY):
1 / 0.7 * 2% = 2.86%
Please note that XXXYYY_Points are updated with each settlement, that's why the results of my AUD/JPY and EUR/NOK calculations differ from that in the rules.
XXXYYY_Points appears to be calculated using following formula: 1 / XXXYYY_Rate * EURUSD_Rate
Open trading account