OPEN-SOURCE SCRIPT
Capital Risk Optimizer
Capital Risk Optimizer 🛡️
The Capital Risk Optimizer is an educational tool designed to help traders study capital efficiency, risk management, and scaling strategies when using leverage.
This script calculates and visualizes essential metrics for managing leveraged positions, including:
Entry Price – The current market price.
Stop Loss Level – Automatically derived using the 30-bar lowest low minus 1 ATR (default: 14-period ATR), an approach designed to create a dynamic, volatility-adjusted stop loss.
Stop Loss Distance (%) – The percentage distance between entry and stop.
Maximum Safe Leverage – The highest leverage allowable without risking liquidation before your stop is reached.
Margin Required – The amount of collateral necessary to support the desired position size at the calculated leverage.
Position Size – The configurable notional value of your trade.
These outputs are presented in a clean, customizable table overlay so you can quickly understand how position sizing, volatility, and leverage interact.
By default, the script uses a 14-period ATR combined with the lowest low of the past 30 bars, providing an optimal balance between sensitivity and noise for defining stop placement. This methodology helps traders account for market volatility in a systematic way.
The Capital Risk Optimizer is particularly useful as a portfolio management tool, supporting traders who want to study how to scale into positions using risk-adjusted sizing and capital efficiency principles. It pairs best with backtested strategies, and does not directly produce signals of any kind.
How to Use:
Set your desired position size.
Adjust the ATR and lookback settings to fine-tune stop loss placement.
Study the resulting leverage and margin requirements in real time.
Use this information to simulate and visualize potential trade scenarios and capital allocation models.
Disclaimer:
This script is provided for educational and informational purposes only. It does not constitute financial advice and should not be relied upon for live trading decisions. Always do your own research and consult with a qualified professional before making any trading or investment decisions.
The Capital Risk Optimizer is an educational tool designed to help traders study capital efficiency, risk management, and scaling strategies when using leverage.
This script calculates and visualizes essential metrics for managing leveraged positions, including:
Entry Price – The current market price.
Stop Loss Level – Automatically derived using the 30-bar lowest low minus 1 ATR (default: 14-period ATR), an approach designed to create a dynamic, volatility-adjusted stop loss.
Stop Loss Distance (%) – The percentage distance between entry and stop.
Maximum Safe Leverage – The highest leverage allowable without risking liquidation before your stop is reached.
Margin Required – The amount of collateral necessary to support the desired position size at the calculated leverage.
Position Size – The configurable notional value of your trade.
These outputs are presented in a clean, customizable table overlay so you can quickly understand how position sizing, volatility, and leverage interact.
By default, the script uses a 14-period ATR combined with the lowest low of the past 30 bars, providing an optimal balance between sensitivity and noise for defining stop placement. This methodology helps traders account for market volatility in a systematic way.
The Capital Risk Optimizer is particularly useful as a portfolio management tool, supporting traders who want to study how to scale into positions using risk-adjusted sizing and capital efficiency principles. It pairs best with backtested strategies, and does not directly produce signals of any kind.
How to Use:
Set your desired position size.
Adjust the ATR and lookback settings to fine-tune stop loss placement.
Study the resulting leverage and margin requirements in real time.
Use this information to simulate and visualize potential trade scenarios and capital allocation models.
Disclaimer:
This script is provided for educational and informational purposes only. It does not constitute financial advice and should not be relied upon for live trading decisions. Always do your own research and consult with a qualified professional before making any trading or investment decisions.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.