Quick Position Sizer [yuginli]

一昨日

Quick Position Sizer

The "Quick Position Sizer" helps traders determine the appropriate position size based on their risk tolerance and the current market conditions. Below is a detailed description of the script, its functionality, and how to use it effectively.

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Key Features

1. Risk Calculation: The script allows users to input their desired risk in monetary terms (in the currency of the ticker). It then calculates the position sizes for both long and short trades based on this risk.

2. Dynamic High and Low Tracking: The script dynamically tracks the highest and lowest prices within the visible range of the chart, allowing for more accurate position sizing.

3. Formatted Output: The calculated values are displayed in a user-friendly table format with thousands separators for better readability.

4. Visual Indicators: Dashed lines are drawn on the chart at the high and low points of the visible range, providing a clear visual reference for traders.

5. If the risk in security price is 1% or less, the background of the cells with position sizes will be green for long positions and red for short positions. If the risk is between 1% and 5%, the background changes to gray, indicating that the risk might be too high for an effective trade. If the risk exceeds 5% of the price, the text also turns gray, making price invisible, meaning there is no justification for such a trade at all.

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Code Explanation

The script identifies the start and end times of the visible range on the chart, ensuring calculations are based only on the data currently in view. It updates and stores the highest (hh) and lowest (ll) prices within this visible range. At the end of the range, dashed lines are drawn at the high and low prices, providing a visual cue for traders.

Users can input their risk amount, which is then used to calculate potential position sizes for both long and short trades based on the current price relative to the tracked high and low. The calculated risk values and position sizes are displayed in a table on the right side of the chart, with color coding to indicate whether the calculated position size meets specific criteria.

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Usage Instructions

1. Add the Indicator: To use this script, copy and paste it into Pine Script editor, then add it to your chart.

2. Input Your Risk: Adjust the 'Risk in money' input to reflect your desired risk amount for trading.

3. Analyze Position Sizes: Observe the calculated position sizes for both long and short trades displayed in the table. Use this information to guide your trading decisions.

4. Visual Cues: Utilize the dashed lines on the chart to understand recent price extremes within your visible range.