Trading large position size (percentage of equity)

Discussion in 'Risk Management' started by Newc2, Nov 17, 2017.

  1. Newc2


    Most interesting post. I had not even considered this. Usually what I have read is to just follow the process and the market will give whatever it does but never have I thought of planning and defining my trading system as per defined needs or wants.
    Thanks again
    #21     Dec 31, 2017
  2. Dan4455


    Good question. I have traded my entire account on one position and been lucky, other times punished severely. I always regret not getting out sooner than I did when I had a loser. Using stops EVERY SINGLE TIME (ie discipline, plan)would have saved me many times. I was greedy. Making money> not losing money> losing money. "the quick and the dead" . which one are you? The best trade I made was holding a good company for a while. For me it was facebook, still in it after buying around 75. But that is investing not trading.
    #22     Jan 10, 2018
    Newc2 and comagnum like this.
  3. One suggestion is to trade multiple strategies; Non-correlated strategies on preferably non-correlated underlyings. I usually trade 6 to 7 strategies on 40 underlyings. So overall it works to around 20 to 25 non-correlated strategies. Some work short-term (2-3 days), some medium term (2 to 3 weeks), some long term (3 to 6 months) and some really long term (2 to 3 years). Allocation is split across all these strategies, depending on my capital growth and income needs. This way, I feel comfortable deploying 70% of my working capital on various trading. However, at a time, only 2 to 3% of my capital is allocated to a given trading strategy.
    #23     Jan 20, 2018