QTY and potential profit are calculated based on the entry price, stop loss (SL), target price, total trading capital, and your specified per-trade risk.
Example: Suppose the signal details are as follows:
- Entry Price: 100
- SL: 98
- Target: 106
The risk per stock would be 2 INR (Entry - SL) and the reward would be 6 INR (Target - Entry).
If your trading capital is set to 100,000 INR with a per-trade risk of 0.5%, your per-trade risk amounts to 500 INR.
QTY Calculation:
Your QTY would be calculated as:
- Per-Trade Risk (500 INR) / Risk per stock (2 INR) = 250 QTY
Potential Profit Calculation:
Your potential profit is calculated based on your QTY multiplied by the reward per stock:
- 250 QTY x 6 INR = 1,500 INR potential profit.
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