Doubledown on overlapping strategies?

Discussion in 'Strategy Development' started by HotTip, Dec 23, 2005.

  1. HotTip


    I have multiple systems that sometimes yield the same long/short call on the same stock. In those cases, should I go ahead and doubledown on that stock? On one hand, they are different strategies, so I should treat it as two distinct investments. On the other hand, I'm exposing myself more to a single stock and can get doubly burned.

    Does anyone ever encounter this problem in their trading? Just curious as to how other people would handle this phenomenon.
  2. if u tested ur system and it says to do that....just do it
    dont question it

    speakin from limited mechanical experience ..but from talkin to many mechanical traders
  3. I like the idea to rank signals...I think it is the only valid use of money management to increase profits...scaling could be incorporated with multiple signals too, I suppose...

    my only problem is to find signals that work...hehe..:)

    Michael B.
  4. Best way to know the answer is to back test your systems and see if the performance (reward/risk measures, etc.) improves doing one way or another.