HELLO GUYS,
I'm Day Trader and one of the issues I'm facing is how can I calculate how much money should I put on each trade (Fast and Automated).
What I'm doing manually is determining the amount of risk I'm willing to take on the total equity first
Then determining the risk on each trade (How much risk is on this trade 1% 2% 15%....
and then use this equation to determine my position on each trade
Position Size = (Total Equity * Total risk on equity) / (Risk on the trade or How far is the stop lose on)
And now what I'm trying to do is building an excel file that could automat this headache
I have few problems while I'm building this equation : (check the file please)
1. I want to add to variable A.(Max) Presatnge allowed from Total equity for Each Trade and B. (min) Presatnge allowed from Total equity for Each Trade
For example if I put The max 20% and The min 10%
that means base on the risk on the trade it will not take more that 20% from the total equity and will not be less than 10% from the total equity
2.If I chose 4 trade and I put the stop lose for each one
How can the result for all total position doesn't exceed the total equity
COULD ANYONE HELP
I'm Day Trader and one of the issues I'm facing is how can I calculate how much money should I put on each trade (Fast and Automated).
What I'm doing manually is determining the amount of risk I'm willing to take on the total equity first
Then determining the risk on each trade (How much risk is on this trade 1% 2% 15%....
and then use this equation to determine my position on each trade
Position Size = (Total Equity * Total risk on equity) / (Risk on the trade or How far is the stop lose on)
And now what I'm trying to do is building an excel file that could automat this headache
I have few problems while I'm building this equation : (check the file please)
1. I want to add to variable A.(Max) Presatnge allowed from Total equity for Each Trade and B. (min) Presatnge allowed from Total equity for Each Trade
For example if I put The max 20% and The min 10%
that means base on the risk on the trade it will not take more that 20% from the total equity and will not be less than 10% from the total equity
2.If I chose 4 trade and I put the stop lose for each one
How can the result for all total position doesn't exceed the total equity
COULD ANYONE HELP
