trade-risk

Position size is calculated by analyzing stock volatility and historical drawdown to produce a composite risk score. This score informs a reproducible sizing plan using Fixed Percentage, ATR-based, or Kelly Criterion methods.

Assessing stock risk involves evaluating volatility, liquidity, correlation, and event risk metrics. This generates a comprehensive risk score from 0 to 100, providing actionable stop guidance and a risk-reward context for the ticker.

ATR and Kelly Criterion can be used together for trade sizing. The analysis supports Fixed Percentage, ATR-based volatility-adjusted, and Kelly Criterion methods, producing a composite risk score and detailed component breakdowns.

Stock liquidity directly affects position sizing and risk budgeting. Liquidity metrics are evaluated alongside volatility, drawdown, and correlation to generate a comprehensive risk score and recommended position size for any publicly traded stock.

Calculating a risk score for a publicly traded stock involves a Python-based workflow evaluating volatility, drawdown, liquidity, financial health, correlation, and event risk. The output is a composite risk score ranging from 0 to 100.

A fixed percentage method for position sizing is less suitable when volatility is high. In such cases, ATR-based volatility-adjusted sizing or the Kelly Criterion provides a more dynamic risk budgeting approach based on a comprehensive risk score.