Same size for every trade

Discussion in 'Trading' started by lukas, Aug 8, 2017.

  1. qxr1011

    qxr1011

    regardless, :)

    if talking about trading the same instrument and trader chooses to trade in certain periods accepting the volatility thereof, then he must choose the size for those games

    looks like you u actually agree with me that size matters, :) and you just trying to adjust it accordingly to the fluctuating stop-loses

    i assume the size for the worst case scenario ( the biggest stop-loss possible in playing periods), and i play it from the beginning to the end with the same size

    the OP is less concern with stops he wants to increase size (and profits) with market going his way

    personally i do not have time for all those manipulations i concentrate on make sure i do not miss something while situation develops

    with the growth of the account trader then can gradually increase size of his position
     
    #11     Aug 8, 2017
    Xela likes this.
  2. Xela

    Xela


    You're varying your risk in proportion to the distance of the initial stop-loss, then. (I'm not telling you not to - I asked for clarification only because we disagree on this point, and you're not someone I normally disagree with.)



    Fair enough.

    (And yes, we agree that size matters: I don't think I've never claimed otherwise, to be honest :D ).
     
    #12     Aug 8, 2017
    RISKonFX likes this.
  3. qxr1011

    qxr1011


    trader imho assumes the risk of the loss (in points) that the method allows in playing periods

    what behind those points in terms of lots is just matter of trader's comfort zone in regard to his account size
     
    #13     Aug 8, 2017
    Xela likes this.
  4. Visaria

    Visaria

    Young puppies perhaps...older experienced wolves know I'm right.
     
    #14     Aug 8, 2017
  5. JackRab

    JackRab

    If you think in % and total exposure... then yes, you should size similar.

    If you think in points and 1 contract = 1 contract... then.... you should probably look at other career options....
     
    #15     Aug 8, 2017
  6. lukas

    lukas Guest

    I agree with "the same risk in each trade approach". That sort of naturally adjusts the size you trade and the stop loss you set. For instance, I might see a setup that is screaming "Hey, I can put a 3-tick stop here, hence I can enter with my max size" which will be equivalent risk to "I need a stop of 6 ticks here, so I will only do half the max size". That kind of risk management is the best, IMO. Then there's the issue of how much to risk per trade but that's another story although the old "1% or less of your risk capital" seems a good choice
     
    #16     Aug 9, 2017
  7. Handle123

    Handle123

    I use same risk on a valid signal as not all signals are valid if software sees something wrong with signal based on recent past of volatility too high, becomes invalid signal. Yes, I know some love volatility, but I trade in direction of controlled markets.

    As age and experience changes, the 50/50 changes of success changes due to better risk management, it changes actually a good deal but much depends on your risk tolerance or hedging in number of ways, options, stocks, futures etc...

    For myself couple of patterns, not necessary chart patterns but loss patterns will alter size traded, ie, backtest 100,000 sample size of valid signals and you search for mean loss in a row and how often this is exceeded, it is often on same plain as averaging down which I always do in scalping and to a degree in day trading, if a signal is valid to take now, and seconds later at better price-all the better. None of this can for tell future losses or profitable trades, but like a casino, we wish to become the house and house seldom loses.
     
    #17     Aug 9, 2017
    beginner66 likes this.
  8. d08

    d08

    First off, it depends on what you're trading. You should've specified you're talking about futures and forex. With equities your size is not only dependent on volatility but the liquidity as well.
     
    #18     Aug 9, 2017
    JackRab and Xela like this.
  9. My trading is automated. The size of the position is based on both the forecast level ("how successful do I think this will be?") and on the volatility of the instrument versus my account size. Suppose I have two instruments A and B with same level of forecast but A has higher value volatility than B, will I take a smaller position in A than in B.
     
    #19     Aug 9, 2017