TMS-Position Sizing

A live position sizing calculator and risk overlay tool. It is neither a trend-following indicator nor an oscillator, but an on-chart decision-support dashboard that displays position size, Stop Loss (SL), Take Profit (TP), and risk/reward metrics in real time.

Key Features

• Simultaneous Dual-Scenario View: Displays side-by-side columns for LONG and SHORT setups, including entry price, SL price/distance, contract size, actual dollar risk, TP price/distance, and prospective profit.

• Tick-Exact Live Calculations: Continuously recalculates all parameters on active, forming candles so traders can inspect exact exposure before committing to a trade.

• Flexible Stop Loss Modes: Choose between High/Low (current candle extremes), Fixed Ticks, or Fixed Dollar Risk.

• Adaptive Take Profit Modes: Choose between Risk-Reward Ratio (RR multiplier), Fixed Ticks, or Fixed Dollar Targets.

• Risk-Based Sizing: Automatically determines max allowable contract sizes based on account risk budget, rounded down to prevent over-leverage.

• Zero Execution Footprint: Pure analysis tool without automated order routing, trailing stops, or strategy signals.

How It Works

1. Entry Baseline: Uses current real-time price as the hypothetical market entry point for forming candles.

2. SL Determination: Calculates Stop Loss distance according to the selected mode:

   • High/Low: Anchors SL to the current candle's high (SHORT) or low (LONG).

   • Ticks: Applies a static tick offset from entry.

   • Dollar: Sets SL based on total portfolio risk allocation (available in fixed sizing mode).

3. Position Sizing: In Risk-Based mode, the indicator computes maximum contracts:

   $$\text{Contracts} = \left\lfloor \frac{\text{Risk Budget (\$)}}{\text{SL Distance (Ticks)} \times \text{Tick Value (\$)}} \right\rfloor$$

4. TP Calculation: Derives target prices using the active TP rule:

   • RR: Multiplies SL tick distance by the target ratio ($k$).

   • Ticks: Applies a static target offset.

   • Dollar: Targets a specific gross dollar return.

Settings

• Instrument Parameters: Auto/Manual tick size and tick value override.

• Position Sizing Mode: Fixed Lot vs. Risk-Based ($) with risk budget input.

• Stop Loss Settings: High/Low, Ticks, or Dollar modes with parameter inputs.

• Take Profit Settings: RR, Ticks, or Dollar modes with parameter inputs.

• Dashboard & Overlays: Chart position, typography scale, SL/TP line toggles, background colors, borders, and independent Long/Short column styling.

Use Cases

• Fixed-Risk Day Trading: A trader risking $500 per setup selects Risk-Based sizing and instantly sees exact contract counts for current candle volatility without manual math.

• Precision Scalping: Scalpers set SL to Fixed Ticks and TP to 1.5x RR to maintain strict risk-reward uniformity across fast-paced executions.

• Volatility-Based Swing Trading: Swing traders anchor SL to High/Low extremes to let position sizes contract automatically during high-volatility expansions and expand during consolidations.