Tradingview.com | [TTI] Position Sizing Calculator

Here is the link. 

"Perhaps the greatest secret to top trading and investing success is appropriate money management or what we now call POSITION SIZING" - Dr. Van Tharp, Definite Guide to Position Sizing (Market Wizard Book #1)
For those of you who have studied position sizing you know the power it can have to the bottom line of your portfolio.


WHAT IT DOES––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
The indicator allows you to quickly determine your position size after you decide to open a trading or investing position. Additionally, it gives you targets in terms of R-multiples (R) that tell you at what price level you achieve 2R or 200% return to a given risk.

The indicator also has the option to print these levels on chart for you.
You can use the calculator for the loaded ticker or other ticker that you wish.


1️⃣ Percent Calculator
👉 Choose position size (%) of total trading portfolio. General guideline here is 25% to be maximum (as per Mark Minervini criteria)
👉 Choose stop loss (%) of total position. This means that if you have 100k portfolio and your position size is 25% (25k), how much of that 25k are you willing to lose in order to asses you are wrong.

OR

2️⃣ Dollar Value Calculator
👉 Choose Stop Price ($) - general guidance is to use technical stop price.
👉 Choose Amount to risk ($) - this is the absolute amount of money you are willing to risk on a position

Both 1️⃣ & 2️⃣ calculate the targets and the target prices in order to determine where to take profits
Additionally, you get instant information for:
👉 How many shares you ought to buy
👉 What is the total size of the position to open
👉 What is your stop amount (either in $ terms or in $ of portfolio)
👉 What is the Risk to Total Equity with the current parameters.

HOW TO USE IT–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
✅STEP 1
Choose ticker and input the price at which you open a position

✅STEP 2
Choose 1️⃣ Percent Calculator OR 2️⃣ Dollar Value Calculator
Depending on the parameters you use to open a position

✅STEP 3
Review the table and the Additional data section to see how much Shares you ought to buy and what is the Risk To Total Equity

✅STEP 4
Put Alerts for Stop Loss and Take Profits

马斯克宣布DOGE新目标:“莫名富有”的国会议员

 刚刚过去的周日晚，世界首富马斯克（Elon Musk）在威斯康星州的一场市政厅活动上宣布，他领导的政府效率部（DOGE）将对国会成员的“异常财富”展开调查，矛头直指前国会众议院议长佩洛西（Nancy Pelosi）、前国会参院共和党领袖麦康奈尔（Mitch McConnell）等政界高层。

马斯克这番言论是在回应一名与会者的提问，他被问及DOGE是否发现美国国际开发署（USAID）向民主党国会众议员沃特斯（Maxine Waters） 、民主党参议员希夫（Adam Schiff）及参议院少数党领袖舒默（Chuck Schumer）等“激进左翼民主党人”汇款的直接“证据”。

面对这个问题，马斯克回应，他正在努力“弄清楚”此事。他说，相信有一条“迂回路径”，让联邦政府的资金辗转流入一些政客的腰包，但并非直接利益输送。

马斯克说：“我只能说，国会里确实存在许多莫名富有的议员，我正试图找出他们'如何致富'的关联。”

他质疑道：“如果他们一年赚20万美元，如何获得2000万美元资产？没人能解释这一点。我们会努力找出原因，当然也会阻止它发生。”

普通国会议员的年收入为17.4万美元，他们有权买卖股票和加密货币，只要披露所有交易。

尽管如此，马斯克还是特别把矛头指向了佩洛西、麦康奈尔、舒默和麻州民主党国会参议员沃伦（Elizabeth Warren），在马斯克X账户上分享的一篇帖子中，据称上述议员的累计净资产总计约为4.39亿美元。

其中最富有的当属净资产约2.5亿美元的前众议院议长佩洛西，她的财富主要来自她与风险投资家丈夫保罗（Paul）对苹果、微软、亚马逊、Google和Netflix等公司的成功投资。

马斯克造访威斯康星州，旨在为保守派法官候选人希梅尔（Brad Schimel）竞选该州最高法院的席位造势。这场选举因可能改变该州最高法院的政治平衡而备受关注。

活动期间，马斯克向两名选民各发放了一张100万美元支票。他此前鼓励人们署反对“激进左派法官”的请愿书以获取奖金。

Study case | Examples | Learn how to apply progressive exposure in the market | Maximizing Profits with Progressive Exposure: The Mark Minervini Trading Strategy Position sizing strategy to maximize your returns

Here is the article. 

Maximizing Profits with Progressive Exposure: The Mark Minervini Trading Strategy

Position sizing strategy to maximize your returns

TinTinTrading | BOOM Traders

Feb 07, 2023

 PROGRESSIVE EXPOSURE has been the single biggest lesson that had a profound impact on my results after being an apprentice of the stock market wizard Mark Minervini for many years and learning his methodology by heart.

Table of contents

1. Why It Matters

   1.1 What is Progressive Exposure

2. Required Components of Progressive Exposure

   2.1 Probabilistic Thinking

   2.2 Asymmetric trading

   2.3 Limiting Loses is a key

3. Practical Take-aways for Progressive Exposure

   3.1 Mark's 5 thinking principles

   3.2 Example of Progressive Exposure

4. Advantages and Limitations

   4.1 Advantages

   4.2 Limitations

5. My Progressive Exposure Rules

   5.1 Rule 1

   5.2 Rule 2

   5.3 Rule 3

6. Conclusion

 

WHY IT MATTERS?

By employing Progressive Exposure, traders ensure that they are trading their largest when the market is the easiest and trading the smallest when the market is the hardest. It is applicable to any trading style, timeframe or trading instrument.

🤷‍♂️ WHAT IS PROGRESSIVE EXPOSURE TRADING

It is a position management strategy involves gradually increasing your market exposure as you gain more wins with trading. By taking advantage of this method, you can increase your chances of making profitable trades when the market is easy while reducing the risk associated with investing in stocks while the market is difficult.

Required Components of Progressive Exposure

🧠 PROBABILISTIC THINKING

Successful trading is an endeavour that relies on probabilistic thinking. One the difference between an experienced and a junior trader is that the experienced trader knows that wins and losses are normally distributed, but only in the long term. In the short term a 50/50% winning system can produce multiple losses in a row. This is because the loss or profit outcome is majorly distributed on the larger market environment. Mark Minervini calls the period where the market produces many winners an "easy dollar environment" versus the market that produces many losers a "hard penny environment" Hence, a hard penny environment is a period in the market when the probabilities of a trade a lower.

🤑 ASYMMETRIC TRADING

In essence, progressive exposure relies on the idea that by slowly entering into the markets with small amounts of money at first, traders can reduce their risk while they learn what works and what doesn’t in terms of trading strategies. As they accumulate knowledge and confidence, they can gradually increase their positions size to capitalize on larger gains as their comfort levels grows that they are in easy dollar environment. This approach also allows traders to gain insights about the market environment before committing large amounts of capital to the market.

As a breakout trader, Mark Minervini preaches a 2:1 Reward:Risk trading style. A 2:1 trader is an additional tool that reinforced the principles of proper risk management. In essence, every win is twice as big as every loss, and when you increase size, the trader finances every bigger trade with the smaller winner. Here is an example:

Practical Take-Aways for Progressive Exposure

💭 MARK’S 5 THINKING PRINCIPLES

While Mark Minervini has not given hard rules about Progressive exposure he has identified five thinking principles in order to use progressive exposure effectively:

• Start small – when starting from cash begin with smaller positions until you get an understanding of how easy the markets moves. Small success leads to big success;
• Increase size only when there’s a traction in you trading – only increase your position size when there’s a clear evidence that your trading style is working will allow winning trades to finance larger trades.
• Respect stops – always have predetermined stops in place;
• Scale back when trading poor – make sure you have rules that is optimised to manage your risk when you perform badly;
• Use leverage judiciously – use leverage cautiously since it carries more risk than regular trades. If you are not trading well at 25% or 50% there is no reason to bump exposure to 75%, 100% or margin.

EXAMPLE OF PROGRESSIVE EXPOSURE

Here is an example of how Progressive exposure allows new traders to increase size when things are working.

• In Trade 1, the trade is a quarter position size. Selling it as a winner, they can determine that the stock market is suitable to apply more risk.
• For Trade 2 he increases trade size to Half position size. Closing it as a winner, the trader has now $3,000 as a running profit in order to test another increase in position size.
• The trader he has now financed a full position size loser as Trade 3 and a half position size loser Trade 4.
• All of this is additionally reinforced due to the 2:1 Reward:Risk profile of the trader.

A more complex examples shows that if Trade 3 in the previous example was a Full position size winner, the trader would have financed 3 Full Position size losers (Trade 4, 5 and 6) and Half size loser (Trade 7).

 

Advantages and Limitations of Progressive Exposure

👍 ADVANTAGES OF PROGRESIVE EXPOSURE

• One of the major advantages of progressive exposure is that it gives traders an opportunity to manage their risk without subjecting themselves to too much volatility. This way, if there is a sudden move against their position, they would not be exposed to large losses as they would not have invested too much capital yet.
• Another advantage of progressive exposure is that it allows traders to take on bigger positions as they gain more experience and understanding of the markets. They can slowly increase their positions while maintaining good risk management practices, thus allowing them to benefit from larger moves in the market and potentially achieve greater returns than if they had taken on larger positions all at once.

LIMITATIONS OF PROGRESIVE EXPOSURE

While progressive exposure has many benefits, there are some limitations associated with this strategy as well.

• One limitation is that it takes longer for the trader to build up their position size compared to other strategies, such as scalping or day trading where traders take on large positions almost immediately after entering the market. This means that trades may miss out on some potential opportunities due to slow accumulation times when using progressive exposure.
• Another limitation is that since this strategy relies heavily on risk management practices and controlling emotions while trading, inexperienced traders are more likely to struggle when implementing this approach correctly than experienced traders who have already developed good risk management habits and emotional control when making trading decisions.

 My Progressive Exposure Rules

Especially when coming out of a bear market it is key to nail down your position sizing and fully exploit the Progressive Exposure logic.

I have created a system that has helped many trading friends to properly exploit the system.

TRADING ASSUMPTIONS

• Portfolio size: $100,000

• Full position size: $25,000 (25%)

• Long term average stop loss: 6% from Position size

• Long term average win: 12% from Position size

• Trader style: 2:1 Breakout trader

👉 SCENARIO 1 - THE 3 TRY TESTING SYSTEM

The rules prohibit you start with full position size when you are starting from cash. Usually I am cash when the conditions have proved highly unfavorable for my trading style.

I trade in batches of 5 trades, starting with microscopic positions. The tiny position size do NOT aim to make me money but to test the waters and keep me engaged in the market.

❗️Rule 1: If my last 5 trades have all been losers I will halt trading for a few days and will not increase position size.

Here is an example how I might try 3 times to test the waters in a short period of time with 15 consecutive losses. The rules protect my account as I would lose less than 1% of my total capital in the process of 15 trades.

I would again start with a batch of 5 trades. There are 2 conditions:

• For the increasing of position size, I would look to grab at least 5 winners in my 15 trades. This comes for a win rate of +30%.

• The second condition that is required is that the average size of the winners has to be close to my long term winning average of 12%. This is important as it is a protection mechanism if things do not continue to work in my favour.

❗️Rule 2: I require to close at least 5 winners in my last 15 trades in order to increase my exposure. The size of the winners also has to be close to my long term trading average.

Here is an example. I would be slower and I would need 6 tries to get to full position size. However, even within the first 3 tries, I gather nearly 5.5% compared to the -0.9% loss in case I am wrong.

SCENARIO 3: THE CHOP FEST

The chop fest scenario occurs when within the exposure journey, things suddenly stop working and you need to start scaling down before you have reached full exposure status. Here the style of 2:1 trading is what protect us. You can see in the example below, at the 3rd try when we use the largest 5% position size, we have already gathered enough running PL within 2nd try to cover 5 consecutive 5% loses losses without loosing any money ($-1,536 vs. $1,810).

❗️Rule 3: Combine Rule 1 and Rule 2. If within your run you start getting multiple consecutive losers, start decreasing exposure.

MAKE IT YOURS

If you like the above logic, you can improve your performance, using the above concepts to make the rules yours. For instance for Rule 1, change the number of trades from 5 to 3. For Rule 2, start with 5% or 6.25% (quarter size) directly, as well as require less winners (e.g 3 winners within last 6 trades).

Conclusion

Overall, Progressive Exposure is an effective strategy for new investors who want to minimize losses because it reduces overall portfolio volatility while still offering potential profit opportunities over time as traders gain more experience and confidence in their skillset. It's an excellent tool for those looking to become successful at trading without exposing themselves too much initially - allowing them to dip their toes into the waters safely before diving deeper later on.