Position size

Position sizing is a crucial aspect of trading that determines the percentage of your portfolio you are willing to risk for a specific trade.

On Anny's platform, you have two options for position sizing:

• Fixed investment -> invest a predetermined fixed portion of your allocation on each trade.
  The risk exposure will fluctuate with every trade based on the investment recommendation.
  Calculation method:
  Entry amount = investment allocation * (Investment recommendation/100)
  
• Fixed risk -> fix the risk by calculating the amount to invest based on the stop-loss position.
  Your first consideration should be the account risk, which is a percentage of the allocated investment that you are willing to risk on the trade. Next, determine the stop-loss level for the trade, which represents the point at which you would exit the trade to limit losses.
  Once you have the risk percentage and the stop-loss level, you can calculate the ideal position size using the following formula:
  Step 1: Investment recommendation = (Risk percent / Stop-loss percent)
  Step 2: Entry amount = Allocation * (Investment recommendation/100)
  
  Anny performs these calculations for you, and you only need to define your desired risk percentage, while the stop-loss is taken from the signal.
  
  
  
  For example, based on the calculation in Step 1, if your risk percentage is 2% and the stop-loss percentage indicated by the signal is 3.94%, the calculated investment recommendation would be (2 / 3.94) * 100 = 50.76%. This means you should invest 50.76% of your allocated investment for this trade.

  By using either the fixed investment or fixed risk method, you can effectively manage your risk exposure and make informed decisions about your trades on Anny's platform.

  Note: the leverage is not taken into consideration for the position sizing, it will be applied later when buying the asset.