This is a script to help you determine your position sizing. I've attempted to make it as easy to use as possible.
Do you have a set 'R' that you risk per trade? Simply check the box for manual R and enter your risk amount.
If you do not have a set amount to risk, you can input your portfolio size and your percentage to risk per trade.
You'll select long or short and then input your entry and stop. If you do not enter a target then the reward will read NaN for Not a Number.
By default, calculations are done in USD. If you are using a different base currency to calculate positions, risk, or profits, simply un-check that box near the bottom of the inputs. You can also re-color the label or move the label around.
Hi, very good indicator, thanks. Can you add a readout for the amount of shares (or units) to purchase. it would be "Risk amount / (Entry Price - (Stop Price)" for long trades, and the opposite for shorts.
Food_Plus
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Hi and thanks for sharing... I have a quick question: Why is it possible to have a Position Size of $400,600, for example, with a Portfolio Value of $100,000? Isn't it better that if Position Size ($400,600) is greater than Portfolio Value ($100,000) then to display Position Size = $100,000?