Position Sizing Calculator (Real-Time)
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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.
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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
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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.
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Positionsizingtool
Position Size By Risk For Bar SizeThis simple script provides a way of calculating position size on a bar by bar basis for a fixed risk amount.
If you are trading a fixed risk amount (e.g. $100) per trade and your Entry and Stop is defined by a specific bar on the chart (any resolution e.g. 15 min, 5 min, 2 min etc) then this indicator will show you the position size you can take.
The user configures the risk amount per trade in the setting for the indicator, the default is 100 (e.g. $100).
It calculates each bar size (high - low) for the resolution of the chart that is being viewed.
The position size = (risk amount) / (bar size).
It then displays a "." (dot) for each bar and to see the position size hover your mouse over this dot .
The pane for this indicator can be set to the top of the chart by using the "Move pane up" option on the chart so that the indicator is easily accessible and discrete at the top of the chart.
Also, there is an option to use this indicator as a substitute for the built-in volume display.
