Click here to Login








Fixed Risk per Trade - Position Sizing

by Juliettpapa, 2898 days ago
Share |






This MM script uses three variables to control the amount to invest per trade and the portfolio risk:
1. Stop loss %: the stop loss in % for a single trade
2. Risk per trade: how many % of your trading capital you want to risk in a single trade.
3. Max. risk: how many % of your trading capital you want to use for ALL RUNNING trades

Example:
Account size: 10,000$
Stop loss %: 10%
Risk per trade: 1%
Max. risk: 30% of account

We buy a stock for 100$. Stop loss is 10%. So we risk per stock 10$
We want to risk 1% of trading capital, which is 1% of 10,000$ = 100$
So we can buy 100$/10$ = 10 stocks for 100$ with a stop loss of 10%.
With this trade we risk 100$ of our trading capital.
Our portfolio risk should not rise over 30% of 10,000 = 3000$.
100$ risk is for the running trade: So we have left 2900$ risk for other trades.


Share This ->
Share |


You have to log in to bookmark this object
What is this?




Type: Advanced Money Management

Object ID: 1036


Country:
All

Market: All

Style:
Technical Analysis

Reviews
You must log in first

Join now
and get instant access for free to the trading software, the Sharing server and the Social network website.
Click here


Related objects
Show All
Rebalance & Combine & backtest two trading strategies (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 104 Notes Report an item
The 2 Percent Rule (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 67 Notes Report an item
Historical trading volatility-based system to adjust trade sizes (by Tom Huggens, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 82 Notes Report an item
Position Sizing: Fixed Dollar Amount (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 98 Notes Report an item
Long strategy created with the money management tool (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 72 Notes Report an item
Hedge a portfolio strategy (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 91 Notes Report an item
Stop Mgmt v 1.1 (by SystemTra.de, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 77 Notes Report an item
Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Technical Analysis


Fundamental Analysis



Random Blog Posts

How to get buy and sell orders for a portfolio based on a trading system/strategy

How to combine long, short and custom portfolio strategies within a trading system

Step by step on how to get free realtime/delayed data for stocks, futures and currencies

Compare stocks and securities by creating a relative performance chart

Buy the best/top rated stocks or how to create powerful rank based trading systems

Ranking stocks based on their correlation with the S&P 500 Index

Creating Stock & Market Short Interest Ratios using Historical Short Sale Data

Select the best ETFs combination to maximize your return and reduce your investment risk

Show All

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object






QuantShare
Product
QuantShare
Features
Create an account
Affiliate Program
Support
Contact Us
Trading Forum
How-to Lessons
Manual
Company
About Us
Privacy
Terms of Use

Copyright 2019 QuantShare.com
Social Media
Follow us on Facebook
Twitter Follow us on Twitter
Google+
Follow us on Google+
RSS Trading Items



Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.