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    Trading Position Size

    Uploaded by

    raghu94086
    The document defines variables for a trading system, including: - Direction of trade (long or short) - Typical spread for the currency pair - Entry price for conditional orders - Average True Range (ATR) as a measure of volatility - Stop-loss and take profit targets in multiples of ATR - Account balance and risk percentage - Account and base currencies for the traded pair

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Trading Position Size

    Uploaded by

    raghu94086
    94 views2 pages
    The document defines variables for a trading system, including: - Direction of trade (long or short) - Typical spread for the currency pair - Entry price for conditional orders - Average True Range (ATR) as a measure of volatility - Stop-loss and take profit targets in multiples of ATR - Account balance and risk percentage - Account and base currencies for the traded pair

    Original Description:

    Position Size of a trade in excel

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    The document defines variables for a trading system, including: - Direction of trade (long or short) - Typical spread for the currency pair - Entry price for conditional orders - Average True Range (ATR) as a measure of volatility - Stop-loss and take profit targets in multiples of ATR - Account balance and risk percentage - Account and base currencies for the traded pair

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    94 views2 pages

    Trading Position Size

    Uploaded by

    raghu94086
    The document defines variables for a trading system, including: - Direction of trade (long or short) - Typical spread for the currency pair - Entry price for conditional orders - Average True Range (ATR) as a measure of volatility - Stop-loss and take profit targets in multiples of ATR - Account balance and risk percentage - Account and base currencies for the traded pair

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    Variables

    ATR Profit

    L
    0.00009
    1.08000
    0.0080
    1.00
    3.00

    Account balance

    200000

    Risk (%)

    3.00
    0.8200

    Direction (L or S)
    Spread
    Price
    ATR
    ATR Stop-loss

    Account currency/base currency

    Orders (do not change any values here)


    Entry order

    BUY BID Stop

    Stop-Loss order

    ASK Stop

    Take Profit order

    Take Profit limit

    Amount to trade
    Amount in the account's currency

    1.08000
    1.07209
    1.10400
    657000
    801220

    Direction; direction of the trade, can be either L (for long) or S (for short).

    Spread; typical lowest spread of the currency pair you will trade.

    Price; price at which your order will be triggered, assuming you use conditional orders (preferred).

    ATR; Average True Range is one of the main ingredients of a money management system. This indicator, available on all
    trading platforms, is a measure of volatility of the past X periods. ATR 10, 14 or 20 are commonly used.
    ATR Stop-loss; stop-loss in multiples of ATR. Let's imagine that the typical ATR for the time frame you're interested in is
    80 pips, and that you'd like to place the stop 40 pips from the entry price, then the value of this variable will be 0.5. If the
    pair becomes extremely volatile and the ATR changes to 300, then the stop-loss would reflect this and change to 150 pips
    (you'd also trade a smaller amount). If the volatility falls to 20, then the stop-loss will be only 10 pips (and you will trade a
    larger amount to compensate for the lower volatility).
    ATR Profit; profit target in multiples of ATR. Similar to ATR Stop-loss.

    Account balance; that's the trading capital you have now, not the money you deposited when you opened the account.
    Risk; risk per trade in percentage points. There is no correct value to enter here, it depends on many factors such as the
    number of currency pairs you trade at the same time, their correlation, the win ratio of your system and your risk appetite. If
    you usually only have one position open then 1% to 5% is acceptable.
    Account currency/base currency. If, for example, you've opened a euro denominated account on Dukascopy, then EUR
    will be the account currency. Base currency is the first quoted currency in a pair. If you wanted to trade USD/JPY, the base
    currency here is the USD. Taking everything into consideration the value of this variable would be the price of EUR/USD,
    or 1.2850, for example. Using the trading contest as an example, where the account currency is USD, then B would be the
    price of USD/USD, which is obviously 1. If you wanted to trade EUR/USD in a USD denominated account, this variable
    would be the price of USD/EUR. You can divide 1 by EUR/USD to get the USD/EUR value. So 1/1.2850 would be 0.7782.

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