OPEN-SOURCE SCRIPT
Position Size By Risk For Bar Size
Updated
This 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.
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.
Release Notes
SummaryThis version adds User Input options to show 2 different position sizes for different risk amounts. This version also adds a user option to display the High & Low of the bar. Tooltips added for User Input boxes.
Details
Normally you will trade with a consistent $ risk amount (Normal Size), but there are occasions where you might want to trade 1/2 size or double size depending on the quality of the trade. So this second risk amount box can be used for this purpose. By default the second position sizing is turned off.
Also added a User Input option to display the High & Low of the bar. By default this is turned off.
Release Notes
The default User Input settings are now set to show 2 different position sizes (Normal risk amount position size and 2x Normal risk amount position size for A+++ setups where higher risk is justified). One or both of these position sizes can be turned off through User Input fields.Modified options to configure what is displayed in the label:
Yes - Shows position size and risk amount
Yes Compact (Default) - Shows only position size
No - Does not show position size or risk amount
Restructured code to bring it in line with Pine Script coding style guide (tradingview.com/pine-script-docs/en/v5/writing/Style_guide.html)
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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