Vol weighted stop loss orders

Discussion in 'Trading' started by taojaxx, Aug 26, 2022.

  1. taojaxx

    taojaxx

    I size my positions according to the underlying volatility, so positions on Oil for example (CL futures contract) are roughly 4 times smaller than positions on $ exchange rate (DX futures contract) because the respective vols are on a ratio of roughly 1 to 4.
    So far I have stop loss orders across all assets as a fixed percentage of my capital, so with the same $ amount.
    My question is should I have wlder stop loss orders for more volatile assets, to avoid being stopped out too soon on those or would that defeat the risk management purpose?