Position Sizing Tool

[tommyjames]

Hi,

 

Would it be possible to make a drawing tool for position sizing?  Maybe something similar to the risk/reward tool.  

It would only need a line for your entry, a line for your initial stop loss and an input for your $Risk.  Then it could calculate the position sizes dynamically as you move the lines on the chart.  $Risk / (Entry - Stop) = Size.  And then allow it to execute a trade with that information.

 

Thanks

[Mike Medved]

Why not use the RiskReward tool for it, and in hotkey calculate the # of shares yourself from two (entry and stop) prices? You saw I added RiskRewardEntry and RiskRewardStop (and Target) in MT hotkeys.

[tommyjames]

How would that work?  Would the risk/reward tool need to be on the chart for the hotkey to be able to pick up the entry and stop price?

[Mike Medved]

Yes. If it is there, RiskRewardxxx variables will have values. If there are two of them there, the values will be taken from the one over which the mouse is hovering.

You could set the QTY in the RiskReward annotation to the Risk amount if you like. Then you could use RiskRewardQty in place of your Risk$.

[tommyjames]

I'm not sure I understand.  If I set the quantity in the risk/reward annotation then won't it be a static number?  I tried to setup a hotkey, see attached.  It gives me an error.

Edited December 2, 2021 by tommyjames

[Mike Medved]

Yes I just fixed that bug. Jerry should put that up soon.

Hm - another thing. If you have 1000/(RiskRewardEntry-RiskRewardStop) and there is no such annotation on the chart you will get a division by zero. Which will just pop up an error I guess so that's ok.

[tommyjames]

It seems the Risk/Reward tool displays the wrong "Ratio".  See attached...

 

 

 

[Mike Medved]

I see I am showing ratio as Stop/Target. Should it be Target/Stop?  Remind me, who else has that tool so I can check what they show?

[tommyjames]

Target/Stop

[Mike Medved]

Changed it.

[Davide92]

Hello Mike, is this functionality already available or we need to download an update?

Thank you

 

[Mike Medved]

It is in the "alpha" - that is latest but not beta that we give out for people to try. Email us at support@medvedtrader.com and we'll give you a link.

[tommyjames]

Hi,

 

Would it be possible to add the following options to the Risk/Reward tool...

 

1. The ability to "Always Hide the Text"

2. Have solid lines that the width is adjustable for the entry and stop

3. Have the anchor points easily accessible

 

Thanks so much!

[Mike Medved]

about (3) - how are anchor points not easily accessible?

[tommyjames]

Once the tool is on the chart, trying to click on it to adjust it is very difficult.  I find myself clicking on it multiple times to select it.  I think addressing (1) and (2) above will help (3).

[Mike Medved]

I did. Load the latest (you have the link I am sure).

[tommyjames]

It's actually more difficult to select now but I see why.  To select the tool you have to click the exact corner of the tool, clicking the line doesn't select it.  If you do have the text on you are able to click on the text and drag the tool around, you can't do that with the text off.  I think having solid lines that you can click anywhere on to select it would be helpful.

Thanks for your work on this, it really helps in sizing positions.

 

[Mike Medved]

Actually something got screwed up. I didn't mean to have it that way. Checking...

Ok fixed it. The fix will be put up probably after the 1st.

[Hans]

When the RR tool is dropped on the chart, it will usually be placed near the last bar on the right side. However, this causes the RR tool to go off chart (see screenshot) as you drag with the mouse to expand the tool.

Can you change the behavior to automatically add spacing on the chart so that the RR tool is displayed within the chart?

In addition to dragging the tool on the chart, I'd like to suggest to allow one-click drop off.

Basically: select RR tool, click near the last bar - this causes the RR tool to be auto-placed with entry point at mouse location and stop/target points at their default setting.

 

Edited May 11, 2023 by Hans