How To Calculate The Ideal Position Size For Max Profit And Minimal Risk

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  • Опубликовано: 30 окт 2024

Комментарии • 61

  • @TheAllennn
    @TheAllennn 3 года назад +7

    This was the clearest video on the process of determining the position sizing. Thank you.

  • @Idontknowww97
    @Idontknowww97 3 года назад +6

    Thanks a lot brother for sharing your knowledge with us. I was a bit confused about this after watching a different video, but you have completely clarified it. 🙏

  • @davide405
    @davide405 3 года назад +4

    thank you very much for this training! i'm learning a lot from you! your every video gives me vital information.

  • @haydenawesome1
    @haydenawesome1 3 года назад +6

    Yo trading view actually does this with the risk/reward tool. Its the quantity in the info bar. You can also edit it in the inputs

  • @adamduhamel9330
    @adamduhamel9330 Год назад

    THANK YOU!! finally found info I was looking for. 😀

  • @invictusdomini8624
    @invictusdomini8624 3 года назад +1

    I made a trade calculator which includes the spread and commissions of a trade into the risk, and my account profit is an exponent which I call the "unrisk". With zero spread and commissions, 1 unrisk is a little more than 1 risk percentage-wise in price movements (with low percent risks). Add the spread and commissions, and the price reward-to-risk grows in order to ensure the same unrisk I set.

    • @Kirankumar-pi3tg
      @Kirankumar-pi3tg 2 года назад +1

      Who tf is giving you 0 spreads on cryptos fr.

    • @itslike123
      @itslike123 Год назад

      ​@@Kirankumar-pi3tgcrypto doesn't have spread. They take 0.04% of your position size on entry plus 0.04% of your trade value on exit

  • @somehow1294
    @somehow1294 2 года назад

    Thank you was looking for such video for long time

  • @majidkor.
    @majidkor. 3 года назад

    Best trading channel on YT !

  • @yermobugatti3489
    @yermobugatti3489 2 года назад +1

    Great Video! I have been taking a lot of losing lumps trading in the crypto market. What I believe is risk management needs improving greatly. Question:
    What is the name or label for the product you calculated for example #1 of "7.69" ?? What is this product from calculation; "the derived leverage number to use or"???
    Oh, Got It!
    The product 7.69 is = x7.69 leverage you may apply to position meeting the full 2% risk available. This can be deviated between its own parameters for example if you want to use 1.25%, and a stop of 0.45% and calculate for resultant = "Leverage"
    The best video on the planet, it combines both example formulas you need to know. Just deciding position size, also deciding position with leverage, or reverse for any of the 3 variables.

  • @eduardoangles9535
    @eduardoangles9535 Год назад

    nice video, how can i calculate how many contracts do i need to buy or sell?

  • @szindbad1033
    @szindbad1033 2 года назад

    You helped me a lot thank you so much dude

  • @godswillokafor8030
    @godswillokafor8030 2 года назад

    This was super clear.
    Thank you bro

  • @sebastianstark4271
    @sebastianstark4271 2 года назад

    Thank you for this Video. Explaining this topic so clear and easy was verry verry helpful ! :)

  • @nm5421
    @nm5421 2 года назад

    awesome guy. straight to the point.

  • @brothercarlsen422
    @brothercarlsen422 7 месяцев назад

    I have a question: how are you able to take a $76900 position, when your account is only $10000. Do these trades assume we have a brokerage that lets us leverage their money as well? How does all that work?
    I'm very new to this, and just trying to get into it slowly, so pardon if I am totally missing something.

  • @Thansk_
    @Thansk_ 2 года назад

    THANKS!!! super useful

  • @Minorima
    @Minorima 4 года назад +2

    Amazing video!

  • @malikawais8173
    @malikawais8173 3 года назад +8

    I am confused because when we use leverage our loss is more than 2% risk of Capital......how to adjust the exact leverage to get exactly 2% risk of capital

    • @mansweepquo
      @mansweepquo 2 года назад +2

      have you got it already?

    • @RealHandofMidas
      @RealHandofMidas 2 года назад +1

      Same question I ask

    • @zaynrobert1110
      @zaynrobert1110 2 года назад

      I know this comment is old but have you got the answer?

    • @kipedire1
      @kipedire1 2 года назад

      @@RealHandofMidas Are you doing cfd stocks trading or pure capital with no leverage?
      i beleive this video is for cfd trading whereby leverage is allowed and you cannot apply the same position size calculation as if you were trading with no leverage. So here you must determine from your available total available capital (total leverage capacity x actual capital) how much will be dedicated to this stock trade keeping in mind your % loss. then you take the answer in monetary value you divide by the actual unit share price to get the number of shares you need to buy .... this will allow your stop loss to remain at the % initially decided

    • @zakaria20062
      @zakaria20062 2 года назад

      Here is the secrete sauce , leverage used to trim your position size ,
      Let say example your 100usd with lavrage 100 that mean your buying power is 10000=10micro lot or 1 mini lot .
      So for position micro lot will be 10% merging from buying power same will be margin from your account so is 10 usd margin for micro lot .
      Micro lot is .10 cent per/pip
      So you can do your calculation
      So 10 pip = 1 usd from your account .
      If your go mini lot is very you will blow your account in less then 1 pip blow your account or you can’t enter .

  • @marimuthum6337
    @marimuthum6337 2 года назад +1

    In scalping there is no time to calculate this numbers to identify lot size... if we plan to enter the end second for 5min candle.... is there any solution for this.....? practical scalping lot size calculation issue.

    • @aghori_eth
      @aghori_eth Год назад

      Simply make a chart like for 0.25%×12x leverage =3% risk like this and make from 0.1% till 1%.

  • @niteshpatel9269
    @niteshpatel9269 2 года назад

    Hi. How does leverage play into all this. There are alot of leverages available. Any help will be much appreciated

  • @vegetaz1532
    @vegetaz1532 3 года назад +2

    how do we know what level of leverage to trade with to keep the risk the same? Im trading btc on bybit and unsure of the level of leverage to use each trade to keep a 2% position size

    • @tradepro
      @tradepro  3 года назад +1

      It depends how far the stop loss is from your entry. If your stop loss is 1% away you can play 2x your account size so 2x leverage max. If the stop loss is 2% away from your entry you can not use leverage but you can enter your entire account balance.

    • @zipporapper
      @zipporapper 3 года назад +2

      @@tradepro i dont quite understand. In the earlier example with a 10k capital, we need a position size of 76,900. So are we saying we need to have a 7.69 Times leverage to get that position size? Hope to hear from you soon on this

    • @SukhpalSingh-wo6ky
      @SukhpalSingh-wo6ky 3 года назад

      @@zipporapper I was wondering the same thing. How much leverage do we need in this example?

    • @nm5421
      @nm5421 3 года назад

      @@tradepro well said. thanks a lot bro . your channel has helped me a lot.. also am already a sub of your Patreon page .. keep doing good and my regards to your wife. peace!

    • @Novaxpass
      @Novaxpass 3 года назад

      @@zipporapper ​ @Sukhpal Singh Yes, 7.69 leverage. If you only use the stop loss risk, you're only risking $26 of your $10,000 account. So you use the formula to find out the leverage amount so you are actually risking 2% of your account

  • @shauno9748
    @shauno9748 4 года назад

    Awesome video. Bro Thank for making all these great videos.
    Would you ever consider sharing a strategy u trade yourself in live markets.

  • @jenerics
    @jenerics 2 года назад

    How do you actually plug this in binance or other exchanges real time.

  • @dripamogus6573
    @dripamogus6573 2 года назад

    Please Can you tell me that how much leverage we should take

  • @bianchiGSXR
    @bianchiGSXR 3 года назад

    Perfec! Thank you

  • @lysander3846
    @lysander3846 3 года назад

    Thank you for this

  • @sandipangoswami8307
    @sandipangoswami8307 2 года назад

    Helpful man❤

  • @gauravpausker3298
    @gauravpausker3298 2 года назад

    what indicators u have plotted in here plz tell my brother

  • @rommelbondoc1121
    @rommelbondoc1121 2 года назад

    do you have a video using this formula but with leverage?

  • @JustJeDa
    @JustJeDa 4 года назад

    could you make a video about how you are trading? which signals en indicators you use and timeframes

  • @LeighRemedios
    @LeighRemedios 4 года назад

    Thanks!

  • @kashyapsutariya9476
    @kashyapsutariya9476 4 года назад +1

    Good bro❤️❤️❤️
    Is this same for indices and commodities and metals?

  • @mskafridi4815
    @mskafridi4815 Год назад

    Thanks a lot 👍

  • @TakiDal
    @TakiDal 3 года назад +1

    So if you calculate your position size of 100 dollar, does it matter if you go with 100 dollar with 0 leverage or with 10 dollar x 10 leverage? The position size is in both cases the same right?

  • @caramcshannon
    @caramcshannon Год назад

    If your account only has 7000 in it how can you open at trade at 38888 where dose the extra money come from

  • @jonathanmanas2737
    @jonathanmanas2737 Год назад

    Atlastttttt

  • @jackthegod9988
    @jackthegod9988 2 года назад

    not realistic , cause youre assuming the person must have leverage instead of just calculate based on his own money , meaning some people with a lower or no leverage cant take the trade

  • @kevtherev8194
    @kevtherev8194 3 года назад

    no!!! Math proves the best way is KELLY CRITERION
    but good luck calculating it - haha