Profitable traders how much do you risk per postion?

I did a quick calculation:

Kelly = 0.58 - 0.42 * 37,820.56 / 33,473.21 = 10.5%

 

In general yes. The trick is that there are strategies with offsetting positions so the absolute risk is 60% but the real risk is much smaller.

Anyway Larry Williams equity curve seems toï aggressive for my taste .

Regards

 

Here you can see the original statements from his broker:

http://www.adest.com.au/larrywilliams/world_cup_championship.htm

He traded different markets at the same time. Normally this results in a less choppy return. So perhaps he would have wiped out his account by only trading 1 market when he had his draw down of over 75 %?

 

This is the data from Larry Williams in an excel sheet

 

Thanks!

I noticed one loss of 56.7% and several smaller losses above 20% ... I guess he was applying some variable risk money management method.

 

as u insist, must have been MM of the "variable kind"


PS: he seems to have since switched his bread & butter business preferring to "smooth" somewhat his equity curve

 

What kind of position sizing are you using in your trading? On what trading vehicles?

 

Tell us a bit about yours.
I'm kind of a shy fellow. Wouldn't want to shine next to LW.

 

Watch the sheet again carefully:
5 times more than -30%
2 times more than -60%
1 time more than -75%

All that within 12 months of trading.

These drawdowns are unacceptable to any fund and to most investors.

 

I was referring to single trade losses, not to drawdowns.

That 56.7% loss was amazing. On the other hand he couldn't have grown his account astronomically without risking heavily. He used a strategy to win the competition, and it worked that time.