How To Calculate The Ideal Position Size For Max Profit And Minimal Risk
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- Опубликовано: 11 июн 2024
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This was the clearest video on the process of determining the position sizing. Thank you.
thank you very much for this training! i'm learning a lot from you! your every video gives me vital information.
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. 🙏
THANK YOU!! finally found info I was looking for. 😀
This was super clear.
Thank you bro
Thank you for this Video. Explaining this topic so clear and easy was verry verry helpful ! :)
Thank you was looking for such video for long time
Best trading channel on YT !
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
Underrated comment right here.
Nice, thanks!
You helped me a lot thank you so much dude
Amazing video!
Awesome video. Bro Thank for making all these great videos.
Would you ever consider sharing a strategy u trade yourself in live markets.
THANKS!!! super useful
awesome guy. straight to the point.
Thank you for this
Perfec! Thank you
could you make a video about how you are trading? which signals en indicators you use and timeframes
Helpful man❤
Thanks!
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.
nice video, how can i calculate how many contracts do i need to buy or sell?
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.
Who tf is giving you 0 spreads on cryptos fr.
@@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
Hi. How does leverage play into all this. There are alot of leverages available. Any help will be much appreciated
do you have a video using this formula but with leverage?
How do you actually plug this in binance or other exchanges real time.
Please Can you tell me that how much leverage we should take
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.
Simply make a chart like for 0.25%×12x leverage =3% risk like this and make from 0.1% till 1%.
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
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.
@@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
@@zipporapper I was wondering the same thing. How much leverage do we need in this example?
@@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!
@@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
what indicators u have plotted in here plz tell my brother
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.
Good bro❤️❤️❤️
Is this same for indices and commodities and metals?
Yes sir!
@@tradepro thanx
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
have you got it already?
Same question I ask
I know this comment is old but have you got the answer?
@@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
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 .
If your account only has 7000 in it how can you open at trade at 38888 where dose the extra money come from
He's using leverage. Google it.
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?
Atlastttttt
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
no!!! Math proves the best way is KELLY CRITERION
but good luck calculating it - haha
Thanks a lot 👍