omerfarooq223 Risk Manager Skill
Overview
The Risk Manager skill automates the calculation of position sizing and risk-to-reward ratios for your SOL trades. It addresses the time-consuming task of manually calculating position sizes based on your portfolio balance and risk management principles.
Components
calculate_risk.py: Python script that calculates position size and risk-to-reward ratio
Usage
When planning a new SOL trade, Claude should execute the calculate_risk.py script with three inputs:
python calculate_risk.py <total_portfolio_balance> <entry_price> <stop_loss_price>
For example:
python calculate_risk.py 10000 25.50 23.00
This will calculate:
- Position size based on risking exactly 1% of the total portfolio balance
- Risk-to-reward ratio assuming a standard 3:1 take-profit target
- Additional risk management metrics
How Claude Should Use This Skill
- When the user is planning a new SOL trade, extract the required inputs:
- Total portfolio balance (in USD)
- Entry price for SOL (in USD)
- Stop loss price for SOL (in USD)
- Execute the calculate_risk.py script with these three values
- Interpret the results for the user, highlighting:
- The recommended position size in SOL
- The position value as a percentage of the total portfolio
- The risk-to-reward ratio
- Potential profit and loss amounts
Output Information
The script provides the following calculations:
- Recommended position size in SOL
- Dollar value of the position
- Position size as a percentage of total portfolio
- Dollar amount at risk (1% of portfolio)
- Take profit price based on 3:1 reward ratio
- Potential profit and loss amounts
- Risk-to-reward ratio
Risk Parameters
- The script defaults to risking 1% of the total portfolio balance
- The script assumes a 3:1 reward-to-risk ratio for take-profit targets
- These parameters can be modified in the script if different risk management strategies are needed
Error Handling
The script includes error handling for:
- Invalid numeric inputs
- Negative or zero values for portfolio balance or prices
- Entry price lower than or equal to stop loss price (invalid for long positions)
- Incorrect number of command-line arguments
If the script encounters an error, Claude should verify the input values and ensure they follow the correct format.
Dependencies
The script uses only built-in Python libraries (sys, math, decimal) and does not require any external dependencies.
Example Output
{
"total_portfolio_balance": 10000.0,
"entry_price": 105.0,
"stop_loss_price": 100.0,
"take_profit_price": 120.0,
"position_size_sol": 2.0,
"position_value_usd": 210.0,
"position_percentage_of_portfolio": 2.1,
"dollar_amount_at_risk": 100.0,
"potential_profit": 30.0,
"potential_loss": 10.0,
"risk_percentage": 1.0,
"reward_ratio": 3.0,
"risk_to_reward_ratio": 3.0
}