Manage risk with an excel formula for sizing (Day trading)

D

Diego443

Hey All,

I want to crate an excel formula for determining my size of a trade but I am stuck right now as I am not really familiar with excel.

Following scenario:

I intent to SPEND $1000 but this number has to be affected by two variables, with the help of a formula.

1.Range, which is divided into a scale from 1-5. 5 should represent a very large range and must influence SPEND by a decrease of 17.5%. 1=3.5%,2=7%, 3=10.5%, 4=14%.

2.Probability, divided into 1-5 as well but with different weights. 5 is very high probability thus this equals 0%. 4 decreases the SPEND by 3%, 3 by 6%, 2 by 9%, 1 by 12%.

I hope this makes sense and I am open for ANY suggestions.

Diego
 
In H3: 1000, In H4=Range, H5=Probability
H6: =CHOOSE($H$4,0.035,0.07,0.105,0.14,0.175)
H7: =CHOOSE($H$5,0.12,0.09,0.06,0.03,0)
H8: =$H$3-($H$6+$H$7)*$H$3
 
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