Risk Management Tool

Successful trading heavily relies on effective money management. Our innovative indicator simplifies this critical aspect by managing trading positions with ease. It displays Profit & Loss (P&L), advises on position size based on chosen risk levels, and assists in setting stop losses and take profit levels through varied criteria like fixed price value, percentage, ATR, and Range. An added feature of determining entries upon crossings with technical indicators means there's no necessity to manually set entries.

Settings Explained for Effective Trades

• Position Type: Choose between "Long" or "Short" to specify the trading direction.
• Account Size: Indicate the total capital available in the trading account.
• Risk: Establish the maximum risk per trade by selecting a percentage of the account size or a fixed amount.
• Entry Price: Input the entry price for the position.
• Entry From Cross: Activate this to set the entry price based on a cross with an external source.

Stop Loss and Take Profit Insights

Both Take Profit and Stop Loss levels can be customized as a value or percentage:

• Take Profit: Set your target level of profit.
• Stop Loss: Specify your threshold for acceptable loss.

How to Trade Using Our Position Management Indicator

Position management tools are pivotal in deciding the appropriate position size that corresponds with a particular risk and stop-loss level. It's typically advised to use only 2% of your capital for risk.

This tool empowers users to define stop losses and take profits via several strategies.

ATR and Range Methods for Precise Limits

The ATR method positions the stop loss/take profit one ATR away from the entry price. Users can set the ATR period via the dropdown menu next to the selected approaches. Similarly, the range method employs a rolling range with a specified period from the dropdown menu.

Unlike other tools available on TradingView, our tool permits entry determination from volatility stop indicator crossings, as depicted in the image above. This feature is particularly handy for setting positions with trailing stops.

FAQ

How do I access this trading indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the best setting for risk?

A commonly recommended risk setting is 2% of your total account size per trade.

Can I use this indicator for both long and short positions?

Yes, the indicator is designed to support both long and short trading positions, providing flexibility in trading strategies.