ThinkOrSwim Position Sizer for Risk Management and Money Management WORKS WITH FUTURES, STOCKS, AND ETFs! The ThinkOrSwim Position Sizer is a VERY important ThinkScript I made that allows me to instantly know what my entry, stop, target, and position size should be in order to maintain an equal risk on every trade I take. One issue many new traders face is inconsistency — especially having losing trades that are larger than their winners.
Jan 19, 2018 - The main 'light bulb' moment(s) had to do with position sizing, risk. Tharp's “Financial Freedom Through Electronic Day Trading” — Don't let the title. As an example let's say that a trader has a system that produces. The other day Marcos asked where he could find a position sizing spreadsheet. If you still have trouble downloading van tharp - definitive guide to position sizing.pdf hosted on 4shared.com 35.25 MB, Van k tharp definitive guide to position sizing filesonic and fileserve links by downloadcity org hosted on uploading.com (740 MB), Van k tharp definitive guide to position sizing hosted on uploading.com (991 MB), Van k.
This is a recipe for disaster in trading. The more variables you can control in a trade, the less likely you are to screw up and lose a lot of money, and the more consistent and predictable your returns will be. And one important aspect of controlling those variables, and thereby smoothing out your growth curve, is sizing your positions correctly every time.
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And this indicator helps you do just that. AUTOMATIC POSITION SIZING The ThinkOrSwim Position Sizer works for both stocks and futures, and lets you choose any entry method you like.
You could enter on closes, opens, highs or lows. You can specify 1 or 2 ticks of padding or slippage on each entry and stop. You can set manual target prices, or have them automatically calculated based on the minimum Risk/Reward you’re willing to accept. You can choose between 3 stop types, and multiple settings for each of those stop types. The Think-Or-Swim Position Sizer currently supports candle or bar based stops, ATR stops, and now Kase DevStops. STOP TYPES: Bar, ATR, and Kase DevStops!
If you choose candle/bar based stops, this indicator allows you to specify what size bar you want to size your entries off of (say a 15′ candle for example), even if you’re trading on a 5′ or 2′ chart. This indicator will allow you to know what the latest 15′ bar’s high and low is, and how many shares you would need to buy in order to properly size an entry based on that 15′ candle. It will then tell you your target and risk/reward ratio in both risk units (Rs) and percentage terms.
If you choose ATR stops, you can specify any multiplier you want — 2x ATR stops, 3x ATR, 1.5x ATR, etc. Targets can update dynamically, or even be set manually. Either way, you’ll always know your risk/reward before entering the trade.
With Kase DevStops, you’ll be able to choose between using the “Warning Line” for your stops, or any of the 3 Standard Deviation DevStops. Your targets can adjust automatically and you will know how many shares or contracts to buy. Risk Tolerance and Risk Management One other important feature of this indicator is that it knows what your account balance is, so you never have to manually calculate things if you don’t want to. The ThinkScript will automatically fetch your account balance, multiply it by whatever buying power/margin leverage factor you want to use, and then calculate the maximum risk you should take on each trade based on your own risk tolerance. FULL FEATURES LIST - Works on Stocks, ETFs, and now Futures too! -- Automatically account for the minimum tick size and tick value of futures contracts - Choose a percent of your buying power to risk on each trade -- Script automatically grabs your current account balance and calculates the right amount of shares/contracts to buy based on your predefined risk tolerance -- Optionally specify a manual/theoretical account balance -- Specify a buying power multiple (2x or 4x account balance, etc., or just leave at 1x to use no margin leverage) - NEW STOP TYPES!