Options include position direction (long or short), risk percent, stop padding, and hard risk amount.
The output displays MaxRisk, SOffset (stop offset), TOffset (target offset), S (stop), T (target), and S (number of shares). The default output is formed based on values from the currently forming candle. Hover over the candle in which you intend to enter the trade for the values to make your order.
Calculations are made in the following manner:
- Stop is last candle low/high with padding
- Stop offset is open – stop
- Target offset is stop offset * risk multiple
- Target is stop offset * risk multiple plus/minus open
- Position size is the either risk / stop offset OR account balance / close (rounded down)
- If the suggested size is greater than the maximum number of shares your account may purchase, the lesser of the two numbers is used. The color of the position size will turn red if the size uses the maximum.
There are other, more robust solutions out there…but they’re also much more expensive. I’m selling this on the cheap because I think it’s so very important. Most traders fail because they don’t practice good risk management. This takes the guess work and emotion out of the trades. All you have to do is find the setups!
U.S. Government Required Disclaimer – Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.