Sigma Applications' Tool Demo
Investment Assessing
Use Position Sizing Tool ... details
Giving the total $ amount of the fund and the percentage of the fund invested in the trade, Position Sizing calculates the SHARES, the total cost $, the possible max. loss in the trade.The feature can be found in:
Scenario 1:
A found of $50,000, with Buy-Long strategy, you are willing to risk 1% of the fund in trade. You want to buy a stock at $50.00/share and get out the position if the stock drops to $49.50/share.
Position Sizing:
- Enter 50000 for Fund
- Enter 1 for Invest in Trade
- Enter 50.00 for Entry Price
- Enter 49.50 for Exit Price
- Tap or click Position Sizing button to process.
Review Results:
It is recommended to buy 1000 shares at the entry price of $50.00/share. The total cost is 50000.
You could face a risk of losing $0.50/share or $500.00 at the stop price $49.50/share for this trade.
Scenario 2:
A found of $50,000, with Buy-Long strategy, you are willing to risk 1.2% of the fund in trade. You want to buy a stock at $50.00/share and get out the position if the stock drops to $49.50/share.
Position Sizing:
- Enter 50000 for Fund
- Enter 1.2 for spending in trade
- Enter 50.00 for Entry Price
- Enter 49.50 for Exit Price
- Tap or click Calculation button to process
Review Results:
It is recommended to buy 1200 shares at the entry price of $50.00/share. The total cost is 60000.
You could face a risk of losing $0.50/share or $600.00 at the stop price $49.50/share for this trade.
Discussions:
Note that the total cost $60000 is in RED as it exceeds the total fund $50000.
To correct it, you could either reduce the investment level to 1% or less of the fund (Refer to Scenario 1), or expand the difference between entry and stop prices (Refer to Scenario 3 for detail).
Scenario 3:
A found of $50,000, with Buy-Long strategy, you are willing to risk 1.3% of the fund in trade. You want to buy a stock at $50.00/share and get out the position if the stock drops to $49.00/share.
Position Sizing:
- Enter 50000 for Fund
- Enter 1.2 for spending in trade
- Enter 50.00 for Entry Price
- Enter 49.00 for Exit Price
- Tap or click Calculation button to process
Review Results:
It is recommended to buy 600 shares at the entry price of $50.00/share. The total cost is 30000.
You could face a risk of losing $1.00/share or $600.00 at the stop price $49.00/share for this trade.
Discussions:
Note that the total cost $30000 is in BLACK now as it is within the total fund $50000.
Use Profit-Loss Estimation Tool ... details
Giving the shares in trade and the buy/sell pricess, Profit-Loss Estimator calculates the potential profit/loss.The feature can be found in:
Scenario 1:
You buy 600 shares of a stock at $50.00/share and sell it at $55.00/share.
Position Sizing:
- Enter 600 for Shares in Estimation
- Select BUY for Entry Point and enter 50.00 for price
- Select SELL for Exit Point and enter 55.00 for price
- Tap or click Position Sizing button to process.
Review Results:
It calculates to have profit of $3000.00 and loss of $0.00.
Scenario 2:
You buy 600 shares of a stock at $50.00/share and sell it at $48.00/share.
Position Sizing:
- Enter 600 for Shares in Estimation
- Select BUY for Entry Point and enter 50.00 for price
- Select SELL for Exit Point and enter 48.00 for price
- Tap or click Position Sizing button to process.
Review Results:
It calculates to have profit of $0.00 and loss of $-1200.00.