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Date/Time: Sun, 19 May 2024 11:06:07 +0000

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Post From: Order Quantity based on percentage/fixed $ amount stop loss

[2020-06-27 16:28:26]
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TeeJay - Posts: 123
I'd like to chime in on this one because what the OP asked a few years ago and what was mentioned here recently would be of extreme value for stock traders doing proper risk management. Like marcelperez said, for momentum traders golden.

Why? Now for a futures trader with only some, or maybe even one main instrument, this would be of not so much weight.
But for a stock trader with a weekly watchlist of like 40+ trades, it is all about that when opportunities arise.
Even 100s of various Trade Windows configurations won't help you with that, as it is unique per trade because of the dependency of the price of the underlying. Let me explain please.

The following could make trading via Sierra for these types of traders much faster, way more efficient, and way less error prone.

Most charting platforms sadly don't take into account that stock traders managing risk efficiently do mostly not calculate in ticks, lots, or number of shares.
They calculate in amounts, percentages, expectancy and position size. And while most broker platforms, which are often completely unusable otherwise, offer this, many of us are on the look for it being properly handled on more sophisticated charting platforms with trading capabilities.

There are several ways something could be implemented, and it should not be a major change of the platform. Optionally, one does not have to use it, like many other features.

1. A global setting if position sizing should be used for trading.
2. An entry of position size, either in ccy amount or percent of account size.
3. Possibility to open a 25%, 50%, 75% or 100% position, where the amount of shares is automatically calculated based on general position size and percentage of the position to open.
4. Easy and quick possibility to close 25%, 50%, 75%, 100% of an open position manually. Could be in the right-click context menu of the chart and/or in the Trade Window.

Now while you can say this could be all done manually, right, now this is true. Everything can be done manually. But exactly doing these things cost valuable time when opportunities arise, and when you are in a hassle are prone to making errors on the go.