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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 !
Can you help answer these questions from other members on NexusFi?
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.
