What is your favorite Position Sizing method and why (for what purpose or goal) please ? Position Sizing methods to mention some here are: 1.None 2.Fixed Size 3.Constant Value 4.Fixed Amount of Equity 5.Percent Volatility 6.Kelly Formula 7.Fixed Fractional 8.Optimal f 9.Profit Risk Method 10.Fixed Ratio 11.Generalized Ratio 12.Margin Target 13.Leverage Target 14.Percent of Equity 15.Max Drawdown Method 16.Maximum Possible 17.Equity Curve Crossovers 18.Real Time Position Sizing
Any poll is limited to maximal 10 options where to choose from, so I had to limit myself here. But you can post in addition to the poll.
WTF is up with OP? He's created a number of these polls. Not sure if he's actually trading and genuinely looking to increase his knowledge, or just autistic, or looking for attention, or wanting to impress with fancy terminology. Anyway, what's my favourite Position size? 69. Oh damn it, wrong pole, sorry poll. Doh, I'm sticking with 69. Final answer.
Compounding. Create a nuclear bomb of returns. -- Assuming, of course, the trader has a great methodology and process and understanding of the market. and not just completely gambling and praying and hoping, and waiting to blow up and bust.
16.Maximum Possible This method sets the position size to the maximum possible number of shares or contracts based on margin requirements. In other words, you’ll trade as many contracts or shares as you can afford. For example, consider a futures trade where the margin requirement for one contract is $3000. For a $25,000 account, the maximum possible number of contracts is 25000/3000 or eight contracts. For a stock trade with an entry price of $14, a margin requirement of 50% and an account size of $35,000, the maximum possible number of shares would be 5000 shares (35000/(0.5 x 14)).