Risk-Based Position Sizing for Pending Orders

Summary

This trading script description explains a workflow for placing pending orders while sizing positions from a chosen equity risk limit. Users specify either a risk percentage or a fixed risk amount, along with broker minimum lot size, the number of positions, and maximum order slippage. The stated purpose is to calculate the lot size and place pending orders with stop-loss and take-profit lines on the chart.

Splitting the position into multiple orders is presented as a way to assign different take-profit levels while dividing the risk. The description says the parameters can be set in the source code, and that a later version also exposes them in an input window on a subsequent run. It does not provide the sizing formula, explain how stop distance affects lot size, or show execution results. Traders would need to confirm the script’s assumptions against their broker’s contract specifications and assess whether slippage, gaps, and actual fills can cause realized losses to exceed the selected risk target.

Key ideas

• The script sizes pending orders using a user-specified equity risk percentage or fixed risk amount.
• Users can set the broker’s minimum lot size, number of positions, and maximum slippage.
• Multiple orders can divide the intended risk across different take-profit levels.
• The description mentions chart-based stop-loss and take-profit lines but omits the sizing formula.
• Broker specifications and execution conditions can affect whether realized risk matches the chosen amount.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.