Risk and Position Sizing

6월 22일

📏 Why Position Size Should Be Based on Risk?

Let’s say you are ready to lose 1,000 in a trade. Based on your stop loss level, you can calculate how many shares (or quantity) to buy, so that if the stop hits, you only lose that ₹1,000.

This is called risk-based position sizing. It makes your trade size dynamic — small when SL is wide, bigger when SL is tight. No more random position sizes — just systematic.

Portfolio size is multiplied by the selected risk % to get money risk per trade.
This amount is then used to calculate how many shares can be bought for the given stop-loss.
So chose your portfolio size in settings. Default Portfolio size is 1,00,000 .

You can select your risk % per portfolio in the settings — for example:

• 0.25% for conservative style
  
• 0.5% to 1% for balanced traders
  
• 1.25% or 1.5% for aggressive ones (not recommended for beginners)
  

This script will automatically calculate how much quantity you should buy, for each stop-loss scenario.

📈 Progressive & Inverse-Progressive Risk Styles

Some traders follow progressive position sizing — they start with small risk when the trend is just starting, and increase the risk % as the trend confirms.

Others follow inverse-progressive sizing — they take high risk at early stages of a bull market, and reduce risk as the trend matures (when upside becomes limited).

📌 This script allows you to manually control the risk % in settings, so you can adjust it based on your trading phase and style.

📋 Three SL Scenarios – Choose What Matches Your Style

The table shows three different stop-loss conditions, and for each one it calculates:

• Today’s Low – tightest stop loss
  
• Yesterday’s Low – slightly safer, ideal for short-term swing trades
  
• EMA Stop (configurable) – gives more breathing room.
  

You can visually compare all 3 in the table and choose whichever fits your strategy and comfort.

Also, you can customize:

• Theme: dark or light
  
• Font size
  
• Table position (upper/lower corners)
  

🧠 Designed for traders who take risk management seriously.

Let this script handle the math. You focus on execution.

Happy Trading!
– LensOfChartist

10월 27일

릴리즈 노트

Added maximum portfolio risk %

10월 27일

릴리즈 노트

Added total value in the table