position-sizer

To calculate optimal position sizes for stock trades, you can use Fixed Fractional, ATR-based, or Kelly Criterion methods. The skill evaluates your risk tolerance, stop-loss distances, and volatility to output a final recommended share count.

Applying portfolio constraints to position sizing involves checking maximum position percentages, maximum sector percentages, and current sector exposure. This skill enforces these risk management rules to prevent sector concentration and calculate a safe share count.

ATR-based sizing works for risk management by using Average True Range to scale position sizes according to market volatility. The skill calculates stop-loss distances and adjusts the recommended share count to align with your predefined risk percentage.

Yes, you can use the Kelly Criterion to determine share count for long stock trades. The skill implements this method alongside Fixed Fractional and ATR-based approaches to calculate optimal position sizes based on your specific risk parameters.

A limitation of using Python for stock position sizing here is that the skill requires Python 3.9 or higher and relies strictly on the standard library. Additionally, it is designed exclusively for long stock trades and does not support short selling.

No, you do not need external libraries to run position sizing calculations. The skill operates using Python 3.9+ and the standard library only, requiring no external dependencies to compute risk management metrics and recommended share counts.