PROTECTED SOURCE SCRIPT
[TTI] Position Sizing Calculator
Updated
b]HISTORY AND CREDITS–––––––––––––––––––––––––––––––––––––––––––––––––––––––
"Perhaps the greatest secret to top trading and investing success is appropriate money management or what we now call POSITION SIZING" - Dr. Van Tharp, Definite Guide to Position Sizing (Market Wizard Book #1)
For those of you who have studied position sizing you know the power it can have to the bottom line of your portfolio.
WHAT IT DOES––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
The indicator allows you to quickly determine your position size after you decide to open a trading or investing position. Additionally, it gives you targets in terms of R-multiples (R) that tell you at what price level you achieve 2R or 200% return to a given risk.
The indicator also has the option to print these levels on chart for you.
You can use the calculator for the loaded ticker or other ticker that you wish.
1️⃣ Percent Calculator
👉 Choose position size (%) of total trading portfolio. General guideline here is 25% to be maximum (as per Mark Minervini criteria)
👉 Choose stop loss (%) of total position. This means that if you have 100k portfolio and your position size is 25% (25k), how much of that 25k are you willing to lose in order to asses you are wrong.
OR
2️⃣ Dollar Value Calculator
👉 Choose Stop Price ($) - general guidance is to use technical stop price.
👉 Choose Amount to risk ($) - this is the absolute amount of money you are willing to risk on a position
Both 1️⃣ & 2️⃣ calculate the targets and the target prices in order to determine where to take profits
Additionally, you get instant information for:
👉 How many shares you ought to buy
👉 What is the total size of the position to open
👉 What is your stop amount (either in $ terms or in $ of portfolio)
👉 What is the Risk to Total Equity with the current parameters.
HOW TO USE IT–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
✅STEP 1
Choose ticker and input the price at which you open a position
✅STEP 2
Choose 1️⃣ Percent Calculator OR 2️⃣ Dollar Value Calculator
Depending on the parameters you use to open a position
✅STEP 3
Review the table and the Additional data section to see how much Shares you ought to buy and what is the Risk To Total Equity
✅STEP 4
Put Alerts for Stop Loss and Take Profits
"Perhaps the greatest secret to top trading and investing success is appropriate money management or what we now call POSITION SIZING" - Dr. Van Tharp, Definite Guide to Position Sizing (Market Wizard Book #1)
For those of you who have studied position sizing you know the power it can have to the bottom line of your portfolio.
WHAT IT DOES––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
The indicator allows you to quickly determine your position size after you decide to open a trading or investing position. Additionally, it gives you targets in terms of R-multiples (R) that tell you at what price level you achieve 2R or 200% return to a given risk.
The indicator also has the option to print these levels on chart for you.
You can use the calculator for the loaded ticker or other ticker that you wish.
1️⃣ Percent Calculator
👉 Choose position size (%) of total trading portfolio. General guideline here is 25% to be maximum (as per Mark Minervini criteria)
👉 Choose stop loss (%) of total position. This means that if you have 100k portfolio and your position size is 25% (25k), how much of that 25k are you willing to lose in order to asses you are wrong.
OR
2️⃣ Dollar Value Calculator
👉 Choose Stop Price ($) - general guidance is to use technical stop price.
👉 Choose Amount to risk ($) - this is the absolute amount of money you are willing to risk on a position
Both 1️⃣ & 2️⃣ calculate the targets and the target prices in order to determine where to take profits
Additionally, you get instant information for:
👉 How many shares you ought to buy
👉 What is the total size of the position to open
👉 What is your stop amount (either in $ terms or in $ of portfolio)
👉 What is the Risk to Total Equity with the current parameters.
HOW TO USE IT–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
✅STEP 1
Choose ticker and input the price at which you open a position
✅STEP 2
Choose 1️⃣ Percent Calculator OR 2️⃣ Dollar Value Calculator
Depending on the parameters you use to open a position
✅STEP 3
Review the table and the Additional data section to see how much Shares you ought to buy and what is the Risk To Total Equity
✅STEP 4
Put Alerts for Stop Loss and Take Profits
Release Notes
Minor fixesAdded additional row showing the % stop
Added a setting to control number of decimal places
👉 I provide FREE EDUCATION + COURSES here: tintintrading.substack.com/
👉 I share my TRADING everyday here: discord.gg/gTmcqWyWWe
👉 I sell premium indicators here: tradingviewindicators.net
👉 I share my TRADING everyday here: discord.gg/gTmcqWyWWe
👉 I sell premium indicators here: tradingviewindicators.net
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.