Max Percent Risk Position Sizer

Sizes each position based on a predefined amount of risk (maximum percentage of capital that can be loss in a trade). In order to this position sizing method to work, all the raw trades should have the "Auto Stop Level" field set. The position size calculated is based on the difference between the position's entry and stop prices.


The simulation's current equity is $10,000.
We need to size a stock position whose entry price is $100 and auto stop level is set at $90.
We want to risk no more than 5% of the current equity in each trade.
The position size (in shares) is: ((5/100)* $10,000) / ($100-$90) = 50 shares



oMax Risk Percent: The percentage of the current equity that will be risked in each position.