OPEN-SOURCE SCRIPT
Position Size & Drawdown Manager
This tool is designed to help traders dynamically adjust their position size and drawdown expectations as their trading capital changes over time. It provides a simple and intuitive way to translate backtest results into real-world position sizing decisions.
Purpose and Functionality
The indicator uses your original backtest parameters — including base capital, base drawdown percentage, and base position size — and your current account balance to calculate how your risk profile changes. It presents two main scenarios:
Lock Drawdown %: Keeps your original drawdown percentage fixed and calculates the new position size required.
Lock Position Size: Keeps your position size unchanged and shows how your drawdown percentage will shift.
Why it’s useful
Many traders face the challenge of scaling their strategies as their account grows or shrinks. This tool makes it easy to visualize the relationship between position sizing, capital, and drawdown. It’s particularly valuable for risk management, portfolio rebalancing, and maintaining consistent exposure when transitioning from backtest conditions to live trading.
How it works
The calculations are displayed in a clean, color-coded table that updates dynamically. This allows you to instantly see how capital fluctuations impact your expected drawdown or position size. You can toggle between light and dark themes and highlight important cells for clarity.
Practical use case
Combine this tool with your TradingView strategy results to better interpret your backtests and adjust your real-world trade sizes accordingly. It bridges the gap between simulated performance and actual account management.
Chart example
The chart included focuses only on this indicator, showing the output table and visual layout clearly without additional scripts or overlays.
Purpose and Functionality
The indicator uses your original backtest parameters — including base capital, base drawdown percentage, and base position size — and your current account balance to calculate how your risk profile changes. It presents two main scenarios:
Lock Drawdown %: Keeps your original drawdown percentage fixed and calculates the new position size required.
Lock Position Size: Keeps your position size unchanged and shows how your drawdown percentage will shift.
Why it’s useful
Many traders face the challenge of scaling their strategies as their account grows or shrinks. This tool makes it easy to visualize the relationship between position sizing, capital, and drawdown. It’s particularly valuable for risk management, portfolio rebalancing, and maintaining consistent exposure when transitioning from backtest conditions to live trading.
How it works
The calculations are displayed in a clean, color-coded table that updates dynamically. This allows you to instantly see how capital fluctuations impact your expected drawdown or position size. You can toggle between light and dark themes and highlight important cells for clarity.
Practical use case
Combine this tool with your TradingView strategy results to better interpret your backtests and adjust your real-world trade sizes accordingly. It bridges the gap between simulated performance and actual account management.
Chart example
The chart included focuses only on this indicator, showing the output table and visual layout clearly without additional scripts or overlays.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Contact me in PM or on Telegram: @nguyenthl
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Contact me in PM or on Telegram: @nguyenthl
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.