You need to know how long your average losing trade lasts.

This indicator calculates risk per day then sizes your position accordingly based on average true range.

I like to scale into positions so I have it entering positions a third (approximately) at a time.

Can't post ELD at the moment for some reason.



inputs: ATRLength( 14 ),risksize(1200), maxpositionsize(50000),av gtradelen(3.5) ;


value2=risksize/((AvgTrueRange( ATRLength )*avgtradelen));



if (value2*close)>maxpositio nsize then value2= maxpositionsize/close;

value1=value2*3;

Plot1(value1*.31, "Init" ) ;

Plot2(value1*.33, "2nd" ) ;

plot3 (value1*.36, "3rd");