Risk Management Calculator with Fees and Take Profit [CHE]
Welcome to the Risk Management Calculator with Fees and Take Profit script! This powerful tool is designed to help traders manage their risk effectively, calculate leverage, and set take profit targets. The script is inspired by and builds upon the ideas from the following TradingView script: [Leverage Calculator](de.tradingview.com/script/2QOicTmi-Leverage-Calculator/). This script is inspired by and builds upon the ideas from the following TradingView script:
Features
1. Portfolio Size Input: Enter the size of your portfolio to accurately calculate your risk and leverage. 2. Max Loss Percent Input: Specify the maximum percentage of your portfolio that you are willing to risk on a single trade. 3. Max Leverage Input: Set the maximum leverage you are comfortable using. 4. Trading Fee Input: Include trading fees in your calculations to get a more realistic view of your potential losses and gains. 5. ATR Settings: Configure the ATR period and multiplier to calculate your stop loss and take profit levels. 6. RSI Settings: Adjust the RSI period for trend analysis.
How to Use
Portfolio Size - Description: This is the total value of your trading account. - Input: `portfolioSize` - Default Value: 100 - Minimum Value: 0.001
Max Loss Percent - Description: The maximum percentage of your portfolio you are willing to lose on a single trade. - Input: `maxLossPercent` - Default Value: 3% - Range: 0.1% to 100%
Max Leverage - Description: The maximum leverage you wish to use. - Input: `maxLeverage` - Default Value: 125 - Range: 1 to 125
Trading Fee - Description: The fee percentage you pay per trade. - Input: `feeRate` - Default Value: 1% - Range: 0% to 10%
ATR Settings - ATR Period: Number of bars used to calculate the Average True Range. - Input: `atrPeriod` - Default Value: 5 - ATR Multiplier: Multiplier for ATR to set stop loss levels. - Input: `atrMultiplier` - Default Value: 2.0
Take Profit Multiplier - Description: Multiplier for ATR to set take profit levels. - Input: `takeProfitMultiplier` - Default Value: 2.0
RSI Settings - RSI Period: Period for the RSI calculation. - Input: `rsiPeriod` - Default Value: 14
Dashboard
The script includes a customizable dashboard that displays the following information: - Portfolio Size - Maximum Loss Amount - Entry Price - Stop Loss Price - Stop Loss Percentage - Calculated Leverage - Order Value - Order Quantity - Trend Direction - Adjusted Maximum Loss Percentage - Take Profit Price
Dashboard Settings - Location: Choose the position of the dashboard on the chart. - Options: 'Top Right', 'Bottom Right', 'Top Left', 'Bottom Left' - Size: Adjust the size of the dashboard text. - Options: 'Tiny', 'Small', 'Normal', 'Large' - Text/Frame Color: Set the color for the text and frame of the dashboard.
Underlying Principles and Assumptions
Leverage Calculation The leverage calculation is fundamental to risk management in trading. It ensures that the risk per trade does not exceed a specified percentage of the portfolio. This calculation takes into account the potential loss from the entry price to the stop loss level, adjusted for trading fees. By dividing the maximum acceptable loss by the total potential loss (including fees), we derive a leverage that limits the exposure per trade. This approach helps traders avoid over-leveraging, which can lead to significant losses.
ATR and Stop Loss The Average True Range (ATR) is used to set stop loss levels because it measures market volatility. A higher ATR indicates more volatility, which means wider stop losses are needed to avoid being prematurely stopped out by normal market fluctuations. By using an ATR multiplier, the stop loss is dynamically adjusted based on current market conditions, providing a more robust risk management strategy.
Take Profit Calculation The take profit level is calculated as a multiple of the ATR, ensuring that it is set at a realistic level relative to market volatility. This method aims to capture significant price movements while avoiding the noise of smaller fluctuations. Setting take profit targets this way helps in locking in profits when the market moves favorably.
RSI for Trend Confirmation The Relative Strength Index (RSI) is used to confirm the trend direction. An RSI above 50 typically indicates a bullish trend, while an RSI below 50 indicates a bearish trend. By aligning trades with the prevailing trend, the script increases the probability of successful trades. This trend confirmation helps in making informed decisions about leverage and position sizing.
Risk Color Coding The script uses color coding to visually indicate the risk level and trend direction. Green indicates a favorable condition for long trades, red for short trades, and gray for neutral conditions. This intuitive color coding aids in quickly assessing the market conditions and making timely trading decisions.
Conclusion
This script aims to provide a comprehensive risk management tool for traders. By integrating portfolio size, leverage, fees, ATR, and RSI, it helps in making informed trading decisions. We hope you find this tool useful in your trading journey.
진정한 TradingView 정신에 따라, 이 스크립트의 저자는 트레이더들이 이해하고 검증할 수 있도록 오픈 소스로 공개했습니다. 저자에게 박수를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 출판물에서 이 코드를 재사용하는 것은 하우스 룰에 의해 관리됩니다. 님은 즐겨찾기로 이 스크립트를 차트에서 쓸 수 있습니다.