OPEN-SOURCE SCRIPT
Position and Risk Calculator (for Indices) [dR-Algo]
Position and Risk Calculator [dR-Algo]: Your Ultimate Risk Management Tool for Indices
The difference between a novice and a seasoned trader often comes down to one essential element: risk management. While trading indices, the challenges are even more intense due to market volatility and leverage. The Position and Risk Calculator [dR-Algo] steps in here to bridge the gap, providing you with an efficient tool designed exclusively for indices trading.
Key Features:
How To Use:
Once you add the Position and Risk Calculator [dR-Algo] to your TradingView chart, a new interactive panel appears. Here’s how it works:
Why Choose This Tool?
Remember, effective risk management is what separates successful traders from those who burn out. The Position and Risk Calculator [dR-Algo] not only helps you define your risk but also helps you understand it, empowering you to trade with confidence.
So why not give yourself the best chance of success? Add the Position and Risk Calculator [dR-Algo] to your TradingView setup and experience the difference it can make.
The difference between a novice and a seasoned trader often comes down to one essential element: risk management. While trading indices, the challenges are even more intense due to market volatility and leverage. The Position and Risk Calculator [dR-Algo] steps in here to bridge the gap, providing you with an efficient tool designed exclusively for indices trading.
Key Features:
- User-Friendly Interface: Designed to integrate effortlessly with your TradingView chart, this tool's interface is intuitive and clutter-free.
- Dynamic Price Level Adjustment: Move your Entry, Stop Loss, and Take Profit levels directly on the chart for an interactive experience.
- Account Balance Input: Customize the tool to understand your unique financial situation by inputting your current account balance.
- Trade Risk Customization: Define how much you're willing to risk per trade, and the tool will do the rest.
- Automated Calculations: The indicator calculates the maximum monetary risk and translates it into the maximum lot size you can afford. It delivers a full-integer lot size to make your trading decisions easier.
- Comprehensive Risk Evaluation: Beyond lot sizes, it provides you with the Cost-to-Reward Ratio (CRV) of your trade, the actual monetary risk according to the calculated lot size, and the potential profit.
How To Use:
Once you add the Position and Risk Calculator [dR-Algo] to your TradingView chart, a new interactive panel appears. Here’s how it works:
- Set Price Levels: Using draggable lines on the chart, set your Entry Price, Stop Loss, and Take Profit levels.
- Account Details: Go to settings and enter your Account Balance and your desired risk percentage per trade.
- Automatic Calculations: As soon as the above details are set, the indicator goes to work. It first calculates your maximum risk in monetary terms and then translates that into the maximum lot size you can take for the trade.
- Review and Trade: The indicator shows you all the vital statistics - CRV of the trade, the money at risk according to the calculated lot size, and the possible profit.
Why Choose This Tool?
- Informed Decisions: Your trading decisions will be based on concrete numbers, removing guesswork.
- Time-saving: No need for manual calculations or using separate tools; everything is in one place.
- Focus on Trading: By automating the risk management aspect, this tool allows you to focus more on your trading strategy and market analysis.
- Tailor-Made for Indices: Unlike many other tools that try to serve all markets, the Position and Risk Calculator [dR-Algo] is designed specifically for indices trading.
Remember, effective risk management is what separates successful traders from those who burn out. The Position and Risk Calculator [dR-Algo] not only helps you define your risk but also helps you understand it, empowering you to trade with confidence.
So why not give yourself the best chance of success? Add the Position and Risk Calculator [dR-Algo] to your TradingView setup and experience the difference it can make.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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.