OPEN-SOURCE SCRIPT
Risk Calculation Mean Reversion
Overview
The Risk Indicator is a comprehensive position sizing and risk management tool designed for traders who want to visualize their potential profit/loss scenarios based on actual dollar amounts rather than just percentages. It displays multiple timeframe 200 EMAs while calculating real-time profit targets and stop-loss distances based on your specified buying power and risk parameters.
Key Features
📊 Multi-Timeframe EMAs
Current 200 EMA (red line) - The standard 200-period EMA on your current chart
1-Minute 200 EMA (black line) - The 200 EMA from the 1-minute timeframe, providing ultra-short term context
1-Hour 200 EMA (baby blue line) - The 200 EMA from the 1-hour timeframe for broader trend perspective
💰 Position Size Calculator
Automatically calculates maximum share size based on your total buying power
Shows exact share count at current price
Real-time updates as price moves
📈 Profit Target Analysis
Distance to each EMA displayed in:
Points (price difference)
Dollar value (based on full position size)
Percentage move required (optional toggle)
Three target levels:
Current 200 EMA (red)
1-Minute 200 EMA (black)
1-Hour 200 EMA (baby blue)
📉 Risk Management
Full Buying Power Risk: Points needed to lose your entire allocated capital
Equity at Risk: Your predefined maximum loss amount (natural stop-loss distance)
Both displayed in points for easy stop placement
🔔 Smart Alerts
Tiered profit alerts trigger when unrealized profit to the current 200 EMA reaches specific thresholds:
$100 through $1000 in $100 increments
Each alert has an independent cooldown counter to prevent spam
Customizable cooldown period (in bars)
Detailed alert messages include:
Profit amount
Current share count
Entry price
EMA target price
Points to target
📋 Information Table
A clean, color-coded table in the bottom right corner displays:
Position Summary
Current share size and price
Total buying power used
Loss Scenarios (red/orange)
Points to lose full buying power
Points to lose equity at risk
Profit Targets (green)
Full position targets at each EMA (with optional percentages)
Equity-scaled targets (profit if only risking your equity amount)
Input Parameters
Parameter Description
Buying Power ($) Your total available capital for this trade (default: $200,000)
Equity at Risk ($) Maximum dollar amount you're willing to lose (default: $25,000)
Show % on Profit Targets Toggle percentage display next to profit targets
Cooldown (Bars) Bars between repeated alerts (default: 20)
How to Use
Set Your Parameters
Enter your total buying power
Define your maximum risk per trade
Adjust cooldown based on your trading style
Read the Table
Top section shows your exact position size
Loss scenarios help you set appropriate stops
Profit targets show potential returns at key levels
Monitor Alerts
Set PulseWire alerts on any of the 10 profit levels
Receive notifications when targets are hit
Cooldown prevents alert fatigue during fast moves
Scale Your Position
Use the equity-scaled targets (bottom row) to see profits if you're only risking your defined amount
Full buying power targets show maximum potential
Alert Messages Example
Risk Alert ($500+): Profit to 200 EMA = $523.45 | 1000 shares @ $150.25 | EMA target $150.78 | 0.53 pts
Ideal For
Position traders who need precise risk calculations
Swing traders using EMAs as dynamic support/resistance
Risk-averse traders who think in dollar terms, not just percentages
Anyone scaling positions who needs to visualize profit scenarios
Notes
All calculations use the current bar's closing price
Table updates only on the last bar for performance
EMAs from lower timeframes may have gaps; indicator handles this gracefully
Cooldown counters are independent per alert level
The Risk Indicator is a comprehensive position sizing and risk management tool designed for traders who want to visualize their potential profit/loss scenarios based on actual dollar amounts rather than just percentages. It displays multiple timeframe 200 EMAs while calculating real-time profit targets and stop-loss distances based on your specified buying power and risk parameters.
Key Features
📊 Multi-Timeframe EMAs
Current 200 EMA (red line) - The standard 200-period EMA on your current chart
1-Minute 200 EMA (black line) - The 200 EMA from the 1-minute timeframe, providing ultra-short term context
1-Hour 200 EMA (baby blue line) - The 200 EMA from the 1-hour timeframe for broader trend perspective
💰 Position Size Calculator
Automatically calculates maximum share size based on your total buying power
Shows exact share count at current price
Real-time updates as price moves
📈 Profit Target Analysis
Distance to each EMA displayed in:
Points (price difference)
Dollar value (based on full position size)
Percentage move required (optional toggle)
Three target levels:
Current 200 EMA (red)
1-Minute 200 EMA (black)
1-Hour 200 EMA (baby blue)
📉 Risk Management
Full Buying Power Risk: Points needed to lose your entire allocated capital
Equity at Risk: Your predefined maximum loss amount (natural stop-loss distance)
Both displayed in points for easy stop placement
🔔 Smart Alerts
Tiered profit alerts trigger when unrealized profit to the current 200 EMA reaches specific thresholds:
$100 through $1000 in $100 increments
Each alert has an independent cooldown counter to prevent spam
Customizable cooldown period (in bars)
Detailed alert messages include:
Profit amount
Current share count
Entry price
EMA target price
Points to target
📋 Information Table
A clean, color-coded table in the bottom right corner displays:
Position Summary
Current share size and price
Total buying power used
Loss Scenarios (red/orange)
Points to lose full buying power
Points to lose equity at risk
Profit Targets (green)
Full position targets at each EMA (with optional percentages)
Equity-scaled targets (profit if only risking your equity amount)
Input Parameters
Parameter Description
Buying Power ($) Your total available capital for this trade (default: $200,000)
Equity at Risk ($) Maximum dollar amount you're willing to lose (default: $25,000)
Show % on Profit Targets Toggle percentage display next to profit targets
Cooldown (Bars) Bars between repeated alerts (default: 20)
How to Use
Set Your Parameters
Enter your total buying power
Define your maximum risk per trade
Adjust cooldown based on your trading style
Read the Table
Top section shows your exact position size
Loss scenarios help you set appropriate stops
Profit targets show potential returns at key levels
Monitor Alerts
Set PulseWire alerts on any of the 10 profit levels
Receive notifications when targets are hit
Cooldown prevents alert fatigue during fast moves
Scale Your Position
Use the equity-scaled targets (bottom row) to see profits if you're only risking your defined amount
Full buying power targets show maximum potential
Alert Messages Example
Risk Alert ($500+): Profit to 200 EMA = $523.45 | 1000 shares @ $150.25 | EMA target $150.78 | 0.53 pts
Ideal For
Position traders who need precise risk calculations
Swing traders using EMAs as dynamic support/resistance
Risk-averse traders who think in dollar terms, not just percentages
Anyone scaling positions who needs to visualize profit scenarios
Notes
All calculations use the current bar's closing price
Table updates only on the last bar for performance
EMAs from lower timeframes may have gaps; indicator handles this gracefully
Cooldown counters are independent per alert level
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Jason Parker is the author of tradinghabits.com/ an editorial site on trading and investing.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Jason Parker is the author of tradinghabits.com/ an editorial site on trading and investing.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.