Stop Loss and Target Profit based on Position Size

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  • 08/01/2020 at 9:10 PM #140632 quote
    Francesco
    Participant
    Veteran

    Hi guys, I would like to know If and how it’s possible to set a target profit or a stop loss based on a certain percentage of the position size.

    For example, on a system that has 100 euros positions, I would like a 20% target profit and a 10% stop loss based on those position sizes.

    Thanks.

    08/01/2020 at 11:27 PM #140636 quote
    robertogozzi
    Moderator
    Master

    Using the symbol % with PROFIT and LOSS ensures your profit or loss is a percentage of the price, no matter whether you traded 1, 2 or 100 lots.

    If you are trading something having a value of € X you first have to compute the value of your positions with:

    TradedValue = pointvalue * abs(countofposition)

    TradedValue is the value for each pip/point.

    If that value is, say, € 1, you need to set a stop loss of 10 pips to risk € 10 and twice that as your target.

    08/02/2020 at 1:11 PM #140649 quote
    Francesco
    Participant
    Veteran

    The fact is that i would like to have a method in order to standardize sl and tp for every assett on which i use an unique strategy.
    The tradedvalue it would be different between two different assets (as well as sl% and tp%), and so i have to optimize values in order to achieve the same result (i.e. 20%)

    For that i thought to a margin based solution (of course using the same margin amount for every assett)

    Is there a solid way to standardize it?

    08/02/2020 at 4:17 PM #140660 quote
    robertogozzi
    Moderator
    Master

    Searching for MONEY you can find many code snippets, strategies and examples worth while reading.

    You can start from this one https://www.prorealcode.com/blog/learning/money-management-prorealtime-code/.

    Francesco thanked this post
    08/02/2020 at 4:40 PM #140665 quote
    Francesco
    Participant
    Veteran

    At the end i decided to manually find a solution, supposing that i run a system on two different assets, i put at first the same position size:

    Assett 1: 1.5 contracts= 1100$

    Assett 2: 3.5 contracts= 1100$

    Then simply

    set target $profit 220
set stop $loss 110

    Which is 20% and 10% of the margin.

    Then i just have to manage the number of contracts in order to have it fixed around 1100€ considering price changes of the assetts through weeks and market movings.

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Stop Loss and Target Profit based on Position Size


ProOrder: Automated Strategies & Backtesting

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Francesco @francesco_petrone Participant
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This topic contains 4 replies,
has 2 voices, and was last updated by Francesco
5 years, 6 months ago.

Topic Details
Forum: ProOrder: Automated Strategies & Backtesting
Language: English
Started: 08/01/2020
Status: Active
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