Position sizing

[daniel lindegren 27]

6 hours ago, Abiel said:

Nice setup @onosendi! 

What stock price range do you use with this setup?

How has it worked for you so far?

Thanks man.

I'm trading the pre-market gappers. Pretty much anything with high volume and good price action.

I love it. It's so easy to manage risk - you always know what you're risking in every trade. 

[jryan 6]

@onosendi Do you have a reference number for the keyboard you ordered?

[daniel lindegren 27]

12 minutes ago, jryan said:

@onosendi Do you have a reference number for the keyboard you ordered?

Here is the AI file: https://drive.google.com/open?id=12Kfqo_c-syuwD62qCIW2FhTtifTFJELp

Order #: 1261842

[jryan 6]

Thanks!

 

[Jramosent 1]

Is still working good? Any updates

[daniel lindegren 27]

14 minutes ago, Jramosent said:

Is still working good? Any updates

I use it every day - I couldn't imagine trading without it. You hear people say "it's hard to manage your risk with the more expensive stocks". With this method, it's not hard at all, since it's all already planned out for you on the keyboard.

Only thing I've changed is, on A+ setups I'll take a bigger size. So if my stop loss is .30 away, I'll hit the .15 key, doubling my normal position.

Let me know if you have any other questions/concerns.

[Jramosent 1]

28 minutes ago, onosendi said:

I use it every day - I couldn't imagine trading without it. You hear people say "it's hard to manage your risk with the more expensive stocks". With this method, it's not hard at all, since it's all already planned out for you on the keyboard.

Only thing I've changed is, on A+ setups I'll take a bigger size. So if my stop loss is .30 away, I'll hit the .15 key, doubling my normal position.

Let me know if you have any other questions/concerns.

This has noting to do with buying power correct? Just risk? 

Would you be willing to do a video and explain it through that? I get the concept but a video would greatly help.

[Jramosent 1]

Would you be able to press these keys also, long+q to go long at certain amount of shares without having to use the send order ?

[daniel lindegren 27]

Just now, Jramosent said:

Would you be able to press these keys also, long+q to go long at certain amount of shares without having to use the send order ?

Start at the beginning of this thread, and read all of the replies. It will answer your last two questions.

[Jramosent 1]

When this calculation gives you the amount of shares to take, how can you adjust accordingly depending on Equity? Say a stock price is $84 and per risk you can take 200 shares, this means you are currently using $16,800. If you have an account with less than this amount and no margin, then share size would be invalid? What would be your suggestions here?

Thank you

[daniel lindegren 27]

2 minutes ago, Jramosent said:

When this calculation gives you the amount of shares to take, how can you adjust accordingly depending on Equity? Say a stock price is $84 and per risk you can take 200 shares, this means you are currently using $16,800. If you have an account with less than this amount and no margin, then share size would be invalid? What would be your suggestions here?

Thank you

In your circumstance, the only thing to do would be to lower your position size.

[JD 49]

On 5/18/2019 at 11:29 PM, Jramosent said:

When this calculation gives you the amount of shares to take, how can you adjust accordingly depending on Equity? Say a stock price is $84 and per risk you can take 200 shares, this means you are currently using $16,800. If you have an account with less than this amount and no margin, then share size would be invalid? What would be your suggestions here?

Thank you

I took Onosendi's table and added in formulas to base the share size on account size and dollar risk per trade. You just have to update the yellow and orange fields once you download the file to excel and it will give you how many shares to take. It's based on a table so it doesn't have every single stop loss amount. I recommend using Kyle K's hotkey for entering positions based on your dollar risk.

https://drive.google.com/file/d/1Fn8E2fX-2NXLpZZaeK8M_qxEepPqzdGf/view?usp=sharing

[daniel lindegren 27]

11 minutes ago, JD said:

I took Onosendi's table and added in formulas to base the share size on account size and dollar risk per trade. You just have to update the yellow and orange fields once you download the file to excel and it will give you how many shares to take. It's based on a table so it doesn't have every single stop loss amount. I recommend using Kyle K's hotkey for entering positions based on your dollar risk.

https://drive.google.com/file/d/1Fn8E2fX-2NXLpZZaeK8M_qxEepPqzdGf/view?usp=sharing

That's a lot of information to enter before each trade.

[bbtamgc 2]

Wow I need this. I'm going to order one right now! 

[Nick M. 0]

On 7/10/2018 at 5:19 PM, daniel lindegren said:

I never use hard stop losses, only mental. Having to manually create an order in the montage would make the keyboard and hotkeys obsolete.

Daniel, thank you for sharing all of this.  I find it incredibly insightful....job well done!

One big question though....Why don't you build hard stops into the scripts?  It seems that you've built this amazing machine to eliminate (or at least greatly reduce) human processing/emotion/error and allow the machine to calculate the risk down to .05 increments.  Why not let it execute on that calculation also instead of risking human emotion/error and missing the manual stop?