Volatility targeting Positionsize

• 04/03/2025 at 11:43 PM #245570
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  Hi, have anyone of you looked into volatility based Positionsizing? I have played around a bit, but with no a huge success yet. Here is my current code, let me know if you have ideas for improvements or other code snippets for this?

  Vol Targ PositionSize

  //--- Parameters riskPercent = 1 // Risk per trade atrLength = 14 atrMultiplier = 2 minContracts = 0.5 //Min amount of contract you wanna take per trade maxContracts = 2 // Max amount of contract you wanna take per trade //--- ATR-based stop loss atr = AverageTrueRange[atrLength] stopLoss = atr * atrMultiplier riskInPoints = close * (riskPercent / 100) //--- Raw positionsize rawSize = riskInPoints / stopLoss //--- Normalizing minRaw = 0.5 maxRaw = 10 normalized = (rawSize - minRaw) / (maxRaw - minRaw) normalized = max(0, min(1, normalized)) // keep within min max contract //--- Normalized positionsize contractSize = minContracts + normalized * (maxContracts - minContracts)

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  //--- Parameters riskPercent = 1         // Risk per trade atrLength = 14 atrMultiplier = 2 minContracts = 0.5    //Min amount of contract you wanna take per trade maxContracts = 2    // Max amount of contract you wanna take per trade   //--- ATR-based stop loss atr = AverageTrueRange[atrLength] stopLoss = atr * atrMultiplier riskInPoints = close * (riskPercent / 100)   //--- Raw positionsize rawSize = riskInPoints / stopLoss   //--- Normalizing minRaw = 0.5 maxRaw = 10 normalized = (rawSize - minRaw) / (maxRaw - minRaw) normalized = max(0, min(1, normalized))  // keep within min max contract   //--- Normalized positionsize contractSize = minContracts + normalized * (maxContracts - minContracts)

  

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