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Position Sizing when Day Trading

Part and parcel of becoming a good trader is the use of correct 'Position Sizing' when you trade. In its most basic form, Position Sizing is the means by which you determine how large a trade you can undertake, given your account size, the instrument's volatility and your own personal tolerance for risk.

To make life easier, we offer you here the 'Camarilla Position Sizing Calculator', which may help you calculate easily the maximum position size you should undertake given any particular conditions. This is something that a standard day trading newsletter or tip sheet WON'T be able to offer!

 
  • Account Size:- How much money you currently have in your trading account
  • Risk Tolerance:- How much of that money you are prepared to risk on a single trade in percentage terms (e.g enter 5 if your risk tolerance is 5%).
  • Stop Loss Size:- how many points you want your stop loss to be for the instrument you are trading. For example, on the S&P, if you wanted a 2 point stoploss, enter 2. If you are trading IBM, and want a 1 dollar stoploss, enter 1.
  • Unit Cost:- the value of a 1 point move in the security's price. For a stock priced in dollars you would enter 1. For an S&P emini contract, you would enter 50 (as it moves 50 dollars per point). For a full size S&P contract you would enter 250 (because it moves $250 per point change).

 

 
Note:- the Position Sizing Calculator is offered for entertainment purposes only - there is no substitute for real-world market experience when deciding how to put on a trade.We make no warranties about this free tool's accuracy or availability and stress that as usual, it does NOT make recommendations about particular investments under any circumstances. The usual disclaimers appy (see below). SureFireThing.com will not enter into any email correspondence or other discussion about this free webtoy.
CAMARILLA
Position Sizing Calculator
Account Size:
 
Risk Tolerance:
  % of Account
Stop Loss Size:
 
Unit Cost :
  $ dollar value per point move
Given the above data, your Position Size is:
    2
Shares or contracts, to the nearest whole contract.