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Stopp Loss Calculation


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Stopp Loss Calculation

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  #1 (permalink)
Vienna/Vienna
 
 
Posts: 3 since May 2020
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Hey Guys,
I have a question regarding stop-loss calculation on multiple position, maybe one of you guys can help me with it.

Lets asume i bought 50 Stocks of NVDA for a price of 315 USD - the current price is 361.
In this position i have a total profit of USD 2300.

Calculation:
(361-315)*50

I now want to buy a second position lets say 50 additional stocks
my average price in this case would be 338 USD

Calculation:
Position 1:
Entry Price 350
Amount of Stocks: 50

Position 2:
Entry Price 361
Amount of Stocks 50

(50*315+50*360)/(50+50) = 338

What I am not able to calculate is the position size (of second position) which would give me a proper amount of additional stocks which only would set my profits of 2300 USD at risk with a stop loss of e.G 5% of the price i buy the second position e.G. current price = 338 (avg price) 5% of it is 16,9 USD so the stop loss is at 321,10

So if my stop loss is hit I only want to loose my profits.

Hope one of you can help me with the formula - thank you !

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  #2 (permalink)
Netherlands
 
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Pa Dax's Avatar
 
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I think what you look for is this?
current profits / (current price - ((100-stoploss percentage) * current price))

so in your example: 2300 / (361 - ((100-0.05) * 361)) = 127 shares

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  #3 (permalink)
chicago il usa
 
 
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when adding to positions you should only do it at lower costs from original entry price. You should never violate 'cost basis'

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  #4 (permalink)
Netherlands
 
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Mozart2112 View Post
when adding to positions you should only do it at lower costs from original entry price. You should never violate 'cost basis'

On the contrary. You want to add to winners and never to losers...

Sent using the futures.io mobile app

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  #5 (permalink)
Vienna/Vienna
 
 
Posts: 3 since May 2020
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Pa Dax View Post
I think what you look for is this?
current profits / (current price - ((100-stoploss percentage) * current price))

so in your example: 2300 / (361 - ((100-0.05) * 361)) = 127 shares

Thank you will try this one
If this works I will let you know. Thank you for your time

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  #6 (permalink)
Vienna/Vienna
 
 
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Pa Dax View Post
On the contrary. You want to add to winners and never to losers...

Sent using the futures.io mobile app

100% right

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  #7 (permalink)
Toronto Canada
 
 
Posts: 5 since Jul 2020
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I believe you want a breakeven stop-loss at $338 - i.e. your average price. If your stop-loss gets hit at this price, then you have a break-even overall trade.

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