Position Sizing Calculator (Real-Time)

29 พ.ย. 2024

█ SUMMARY

The following indicator is a Position Sizing Calculator based on Average True Range (ATR), originally developed by market technician J. Welles Wilder Jr., intended for real-time trading.

This script utilizes the user's account size, acceptable risk percentage, and a stop-loss distance based on ATR to dynamically calculate the appropriate position size for each trade in real time.

█ BACKGROUND

Developed for use on the 5-minute timeframe, this script provides traders with continuously updated, dynamic position sizes. It enables traders to instantly determine the exact number of shares and dollar amount to use for entering a trade within their acceptable risk tolerance whenever a trade opportunity arises.

This real-time position sizing tool helps traders make well-informed decisions when planning trade entries and calculating maximum stop-loss levels, ultimately enhancing risk management.

█ USER INPUTS

Trading Account Size: Total dollar value of the user's trading account.

Acceptable Risk (%): Maximum percentage of the trading account that the user is willing to risk per trade.

ATR Multiplier for Stop-Loss: Multiplier used to determine the distance of the stop-loss from the current price, based on the ATR value.

ATR Length: The length of the lookback period used to calculate the ATR value.

28 พ.ย.

เอกสารเผยแพร่

█ SUMMARY

The following indicator is a Position Sizing Calculator based on Average True Range (ATR), originally developed by market technician J. Welles Wilder Jr., intended for real-time trading.

This script utilizes the user's account size, acceptable risk percentage, and a stop-loss distance based on ATR to dynamically calculate the appropriate position size for each trade in real time.

█ BACKGROUND

Developed for use on the 5-minute timeframe, this script provides traders with continuously updated, dynamic position sizes. It enables traders to instantly determine the exact number of shares and dollar amount to use for entering a trade within their acceptable risk tolerance whenever a trade opportunity arises.

This real-time position sizing tool helps traders make well-informed decisions when planning trade entries and calculating maximum stop-loss levels, ultimately enhancing risk management.

█ USER INPUTS

Trading Account Size: Total dollar value of the user's trading account.

Acceptable Risk (%): Maximum percentage of the trading account that the user is willing to risk per trade.

ATR Multiplier for Stop-Loss: Multiplier used to determine the distance of the stop-loss from the current price, based on the ATR value.

ATR Length: The length of the lookback period used to calculate the ATR value.

***Update 2025***
-Reduced overall text size to decrease chart clutter.
-Added Stop Loss Level cell to track real-time price level for Stop Loss based on Acceptable Risk Percent, ATR Multiplier, and ATR Length. This can be utilized as a hard stop to assist in plotting a price level upon entry into the trade as well as a real-time trailing stop if you so wish.

เมื่อวาน

เอกสารเผยแพร่

-Added Take Profit option to easily track real-time price level based on reward-to-risk ratio.