Risk Management & Position Size Dashboard

The Risk Management & Position Size Dashboard tool provides traders with real-time position sizing and risk-to-reward calculations to ensure every trade aligns with a defined risk profile.

Usage

The Usage section describes how the script can be used to manage risk effectively. Upon adding the indicator, users can interactively select Entry, Stop Loss, and Take Profit levels directly on the chart. These levels can be adjusted at any time via drag-and-drop functionality for instant dashboard updates.

The tool is designed to support both limit and market orders. By toggling the "Use Current Price as Entry" setting, the dashboard will recalculate metrics based on the live market price. The dashboard automatically shifts its position—appearing at the bottom for Long positions and the top for Short positions—based on the relative location of the stop and target levels.

Examples of use cases include:

• Scalping: Quickly calculating the maximum allowable position size on low timeframes where volatility requires precise leverage management.
• Swing Trading: Planning multi-day trades by visualizing the "Free Trade Level," which indicates the point to exit 50% of a position to remove financial risk from the remainder of the trade.
• Account Growth: Maintaining consistent risk by entering a fixed percentage of capital (e.g., 1% or 2%) into the settings to avoid emotional over-leveraging.

Details

The Risk Management & Position Size Dashboard is constructed to eliminate the need for external spreadsheets or calculators. It processes user-defined capital and risk parameters to output critical execution data.

The dashboard provides the following metrics:

• Trade Risk (%): The distance between entry and stop loss in percentage terms.
• Max Risk ($): The exact monetary value lost if the stop loss is triggered.
• Size: The quantity of units or contracts to purchase.
• Size ($): The total notional value of the position.
• P&L ($/%): Potential profit in both currency and percentage relative to account capital.
• R:R: The Risk-to-Reward ratio of the current setup.
• % to Target: The price movement required to reach the take profit level.

The script utilizes interactive chart inputs and real-time math calculations to ensure that position sizes never exceed the user-defined "Max Leverage" or "Max Risk Per Trade" constraints.

Settings

• Current Capital: The total value of the trading account used for risk calculations.
• Max Risk Per Trade: The maximum percentage of account equity to risk on a single trade.
• Max Leverage: Sets a ceiling on the leverage used to prevent excessively large positions on tight stops.
• Stop Ticks: Adjusts the stop loss level by a specific number of ticks above or below selected price levels.
• Use Current Price as Entry (Market Orders): When enabled, forces the entry price to stay anchored to the live market price.
• Display Free Trade Level: Toggles the visibility of the break-even point after a partial exit.
• Visual Customization: Includes settings for dashboard size, text size, and color themes for price levels.

FAQ

How do I adjust my entry and exit levels? You can either drag the lines directly on your chart for real-time feedback or manually input specific price coordinates within the indicator settings menu.

Does this indicator provide buy or sell signals? No, this tool is purely for risk management and position sizing. It helps you determine how much to trade based on your own strategy and entry criteria.

How can I access the Risk Management & Position Size Dashboard? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.