How to Calculate Position Sizing Based on Percent of Account Value and Equity at Risk
In this video I am going to show you how to calculate position sizing based on percent of account value and equity at risk with multiple price targets.
This walkthrough of position sizing will highlight the need to calculate the appropriate position size for each equity trade. I will cover how to set up the formulas for calculating a position size based on the max equity value you are willing to commit to a trade. The second method of position sizing I will walkthrough calculating the position size of a position based on how much equity you are willing to risk on a given trade. The final method I will walkthrough will combine the first two approaches into an optimal position sizing method that considers both total equity at risk and total equity committed to a trade. After watching this video you will be able to answer the question of how to calculate position size of trades with multiple price targets when considering equity as a percent of account value and equity at risk.
**Timestamps**
0:00 Introduction and Overview
1:16 Position Size Based on Total Percentage of Account Value
3:40 Position Size Based on Equity at Risk as a Percentage of Account Value
6:07 Combining the Two Different Methods
9:02 Conclusion and Final Thoughts
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Disclaimer: The affiliate links above may provide me with a commission for purchases made through the link, but these are a product I use and highly recommend. All information in the video is strictly for information purposes only, author assumes no liability for any trades/bets/wagers placed utilizing the information covered in the video.