Position Sizing Calculator
This script calculates the position size base on the stop loss price, entry price, and the percent of equity willing to risk.
Formula:
(Asset Quantity) = (Amount Risk at Trade) / (Price Difference Between Entry Price and Stop Loss)
or
Position size = (% Equity at Risk) * (Equity) / (Entry Price - Stop Loss Price)
Formula:
(Asset Quantity) = (Amount Risk at Trade) / (Price Difference Between Entry Price and Stop Loss)
or
Position size = (% Equity at Risk) * (Equity) / (Entry Price - Stop Loss Price)
Release Notes:
This Pine Script indicator serves as a practical Position Sizing Calculator, aiding traders in managing risk and determining appropriate position sizes. Key features include:
Equity Management: Traders can input their total equity, providing a foundational parameter for dynamic position sizing based on a percentage of the total equity at risk.
Percentage of Equity at Risk: Users can specify the percentage of their equity that they are willing to risk on a trade, allowing for precise control over risk exposure.
Stop Loss and Entry Price: The indicator accommodates the input of both stop loss and entry prices, facilitating comprehensive risk analysis.
Position Size Calculation: The formula for position size takes into account the total equity, percentage of equity at risk, and the absolute difference between entry and stop loss prices. This results in a calculated position size that aligns with the specified risk parameters.
Open Profit/Loss: The indicator calculates the open profit or loss based on the current close price relative to the entry price.
Table Display: A table is presented on the chart, summarizing critical information, including total equity, percentage of equity at risk, stop loss price, entry price, current price, position size, and open profit/loss.
This Position Sizing Calculator offers a straightforward yet powerful tool for traders to make informed decisions about position sizes, taking into account risk tolerance and specific trade parameters. It promotes disciplined risk management and enhances overall trading strategy effectiveness.
Equity Management: Traders can input their total equity, providing a foundational parameter for dynamic position sizing based on a percentage of the total equity at risk.
Percentage of Equity at Risk: Users can specify the percentage of their equity that they are willing to risk on a trade, allowing for precise control over risk exposure.
Stop Loss and Entry Price: The indicator accommodates the input of both stop loss and entry prices, facilitating comprehensive risk analysis.
Position Size Calculation: The formula for position size takes into account the total equity, percentage of equity at risk, and the absolute difference between entry and stop loss prices. This results in a calculated position size that aligns with the specified risk parameters.
Open Profit/Loss: The indicator calculates the open profit or loss based on the current close price relative to the entry price.
Table Display: A table is presented on the chart, summarizing critical information, including total equity, percentage of equity at risk, stop loss price, entry price, current price, position size, and open profit/loss.
This Position Sizing Calculator offers a straightforward yet powerful tool for traders to make informed decisions about position sizes, taking into account risk tolerance and specific trade parameters. It promotes disciplined risk management and enhances overall trading strategy effectiveness.