Very Nice HTML Position Size Calculator

[Philby]

Dana

When I calculate out the position size I get 36 shares based on your parameters. My calculation allows for brokerage in & out ( A$33 each way in Australia)

( $35.93 - $32.23) / ($200 - (2*$33)) = 36 shares

This method takes account of your 2% risk management limit on your equity base and makes sure the return on equity covers the initial brokerage expense as well.

Originally posted by dberliner
Is this a fibonnaci extension mis-calculation on my part?
look at this chart of MHS.
it broke today the 6/4 DMA and I'm looking to enter above the high of that bar at 35.93 , with a stop at the low of Wave 4 - 32.23.
if I risk 200 $ on this one , I can buy 54 shares. the 1.6 risk/reward ration (at 38.21) , would give me a profit of $120 , which is less than the risk! now , I do understand it gave me 60% of 200$ ,but it should've been 1.6 times the risk , shouldn't it ?
That's the extension number I've seen being used on the videos for risk/reward... So what am I missing here? How am I supposed to calculate risk/reward?


TIA ,


Dana Berliner

[dberliner]

Philby,

I Use a Position size Calculator as well, however I pay much less money in commissions ... that's how we get the difference


Marc - Great Job , Thanks !


__

Dana Berliner

[Catano]

Hello,

excuse me about my english.

@Marc
very fine job, thanks

@Philby and dberliner,
Where can i get the" Position size Calculator"

Viele Grüsse Catano

[Philby]

Position Size Calculator

Dana & Catano,

I have attached the Position size calculator for you to try.

I have a few others which are excel spreadsheets and have more bells and whistles but I find this one the easiest to use.

Click to unzip

Originally posted by Catano
Hello,

excuse me about my english.

@Marc
very fine job, thanks

@Philby and dberliner,
Where can i get the" Position size Calculator"

Viele Grüsse Catano

[dberliner]

Thanks , Philby

As you've said , it was easily found on the web!


__

Dana Berliner

[pj909]

Position Size

Philby,
Very Nice HTML calculator. You mentioned you have some other position size calculators in Excel. I have been working on on for options but I still need an options calculator as an Excel add-in. Do you know of one?

Marcus,
This topic seems to have spawned some interest. Philby's calc has a bunch of downloads already. How about moving this to a new thread?

[Catano]

@Marc

thx, very intresting

@Philby

thanks, it´s a fine tool. I had interesse to the excel sheets, can you send me?

Can you tell me what means commission in the price calculator?

Viele Grüsse Catano

[pj909]

Originally posted by Catano

@Philby

thanks, it´s a fine tool. I had interesse to the excel sheets, can you send me?

Can you tell me what means commission in the price calculator?

Viele Grüsse Catano [/B]

The Position Size thread has moved to:

http://forum.esignalcentral.com/showthread.php?s=&threadid=6654

[MR]

I created this new thread and moved the calculator information here, as per request below. This is a good topic. Glad it was introduced.

[Philby]

Position size

Catano,

The commission is the cost of brokerage and is doubled in the algorithm to take into account both entry & exit.

This calculator is good because it is based on calculating a position size which reflects your chosen risk position.

Using Dana's position the other day, she was trading a $10,000 account. So if you want to limit your equity risk to 2%, you will not risk more that $200 per deal.

Therefore the risk sum is $200 less the brokerage commission in & out divided by the stop loss position.

On-line Brokerage in Australia is $33 each way, so we get

$200 - $33 (in) - $33 (out) = $134

If the Equity/stock is trading at $15 and your stop loss based on the 38% fib retracement position is $14.70, the resulting sum to calculate a risk adjusted position size is

$144 / ($15 - $14.70) = 446 shares

Hope this helps

Originally posted by Catano
@Marc

thx, very intresting

@Philby

thanks, it´s a fine tool. I had interesse to the excel sheets, can you send me?

Can you tell me what means commission in the price calculator?

Viele Grüsse Catano

[Catano]

@Philby

The commission is the cost of brokerage and is doubled in the algorithm to take into account both entry & exit.

This calculator is good because it is based on calculating a position size which reflects your chosen risk position.

Using Dana's position the other day, she was trading a $10,000 account. So if you want to limit your equity risk to 2%, you will not risk more that $200 per deal.

Therefore the risk sum is $200 less the brokerage commission in & out divided by the stop loss position.

On-line Brokerage in Australia is $33 each way, so we get

$200 - $33 (in) - $33 (out) = $134

If the Equity/stock is trading at $15 and your stop loss based on the 38% fib retracement position is $14.70, the resulting sum to calculate a risk adjusted position size is

$144 / ($15 - $14.70) = 446 shares

Hope this helps

Thank you for the Demonstration.

Your last example had I test with the Position Size Calculator.

Is this so korrekt?



Why have you 446?

Greats Catano

[Philby]

Position size

Yes your example is correct - the differnce is rounding. I did not type the rounded up number into my post

[pj909]

Hi Philby,
Would you be willing to share any of your spreadsheets on position sizing with us?