Stop Loss and Target Profit based on Position Size

Francesco · 2020-08-01T20:10:42+00:00

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.

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08/01/2020 at 9:10 PM #140632 quote

Francesco
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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

Legend
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

Legend

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
6 years, 2 months ago.

Topic Details

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