$$/ symbol (Position size) for a 50k acount balance

Discussion in 'Strategy Building' started by DTorSwing, Jul 10, 2015.

  1. I know it depends on individual trading style and r/r
    but by average,
    how much $$/each symbol for a 50k account balance

    how much $$/each symbol for Descretionary Trading
    how much $$/each symbol for Automated Trading

    I am sure Automated, we can do more symbols, but if I do 1k 0r 2k/symbol.
    doesnt sound crazy? too many symbols to analyse and manage ?
     
  2. xandman

    xandman

    People mostly use % risk and not % value. Ex. With a volatility based system trading only stocks with 10% annualized volatility and risking 2% of the portfolio, you would trade 5 stocks @ $10,000 for each position.

    If you use 1% or 2% value as position size, the resulting gains and losses would be incredibly minute and tedious.
     
    DTorSwing likes this.
  3. Ok, with size of $10,000/symbol, I am afraid of days that I lose 4 out of 5 or even 5 out of 5
    and let me read about % risk
     
    Last edited: Jul 10, 2015
  4. xandman

    xandman

    Play with the numbers on a spreadsheet. Note; i gave annualized volatility as an example. The moves are still small on a daily basis.
    i do greater than 5 times that risk and i'm a pussy
     
    Last edited: Jul 10, 2015
  5. ok, I also measure and filter stocks by volatility from its ATR value and works good for me
    for position size, I would be trying/testing smaller amounts/symbol, before finalizing my setup
    tks for the input