Position Sizing Worksheet

The Watch List / Position Sizing Worksheet

What does this worksheet do?

The worksheet allows you to enter the stocks that have caught your attention (perhaps after running scans and templates within EdgeRater or from any other source).

You can enter the date the stock was interesting to you and some text in the comment field to remind you why you added it when you review the list again in the future (after all – that’s what a watch list is for).

You could just stop there, thereby creating a simple list of stocks and dates and comments. This alone would be very useful, especially when loading it up as a report inĀ  EdgeRater and having the charts automatically change to show you the stock and point out the date that it was added to the list. See below video for an example of how to use the worksheet.

However, you could also add information about your trading account size, desired % account risk per trade and then fill in the proposed entry level and exit level for your stock. The worksheet will then calculate the following information:

  • $ Allowed Risk
  • #Shares allowed
  • $Risk/Share
  • %Overall Risk (which should equal your %Risk/trade unless you have overridden the #shares)
  • Position Cost (or credit if shorting)
  • $Profit/Share
  • Profit/Loss as a decimal value (ex: 3)
  • Profit/Loss as a ratio (ex: 3:1)
  • $Profit
  • $Loss

How to use the worksheet

First download the worksheet as a zip file and unzip it to an Excel .xlsx file. If you are using EdgeRater (recommended) you can copy the xlsx file to your EdgeRater\Reports folder or any other location that is easy for you to remember.

Next run EdgeRater and in the ‘Templates” tab click the menu option ‘Open Report’. This will allow you to select the .xlsx file that you just downloaded. If you copied it to the EdgeRater\Reports folder it will be easy to find because the Open Report function defaults to looking for files in that folder. If you copied it to a different location you will need to direct the file opener to that location. Once the worksheet is open, press the ‘Allow Editing’ button in the menu.

Once you have that set up, watch the following video for an example of how to use the worksheet:


Download Worksheet

Download the worksheet here