When I trade small and risk 1 to 2% per trade (on daily chart)I get bored and cannot handle tracking multiple positions for bigger moves. Everything seems to move in slow motion and so I exit early out of frustration When I break the text book rules and trade over 50% on a stock and hold for a couple of days, I consistently make good money most days ( with a stop below entry candle). My logic being is in an uptrend with a 60% win rate, how far can a position move against me ie. not far at all) When I go back to small position sizing I revert back to small profits and meaningless trading. What's going on? Am I wired backwards and destined for continued success by trading large? Or are the textbooks right and I am due for a big fall? This has been my observation for a couple of years. I try to trade like the masses are told but only sabotage myself. My logic is to hold for a shorter period so emotion has less time to mess with my trade.
If you trade large, you will destined to failure, sometimes things get ugly and fast. IMO I risk 15% per trade max.
I'm not going to point out the empirical horror you propose because you know it in better detail than all of us. I'm only going to point out that no one here will come to your defense, because all who trade that way are gone. Busted.
"But I have made hundreds of percent returns and take equity out regularly" Most traders lose or are barely profitable so I expected most replies would be like yours. I guess I was kind of hoping that some profitable and more experienced here might agree. Is what I'm suggesting anything different from Kelly criterion? How can I argue with what works?
We don't know your parameters, you calculate your own Kelly and decide for yourself. If I have to guess, By your 50% trade size, I would say you trade on the down slope side of Kelly. . Good luck.
87.5% of my portfolio is in 2 options trades lol but i don't trade individual stocks or do any that directional trading i measure risk differently. just check out my youtube u'll see how well im doing
Trading large is entirely dependent on the volatility of the underlying. 10% of equity is large for some fast moving momo stocks while developed market ETFs can do 500% with low risk. The only way to know anything is to do a portfolio backtest and find out the worst case scenarios.