This is Elite...Trader. You should be striving....for Eliteness, Greatness, Boldness...and not just averageness. You should hang out at AverageTrader.com, being content with making very modest, small, gains per year. I probably just described 99.3% of the people who have ever visisted this website since its grand opening birth.
I build my own formula to define the optimal size to trade. Position sizing should be based on ALL the elements of the builded system that have an impact on the profits and losses. So I use in my calculation: Slippage Point Value Commisson Maximum size Stop Risk In the excel below you can see how it works. It is a hypothetical sample as I had to exagerate the numbers to show how the sizing works. Open: price of initiating trade L/S: long is 1 and short is 0 Close: is close of the trade Size: maximum size I can trade. This number is already present before this trade is initiated and is calculated on the account size at the end of the previous trade. Real Margin: is the effective margin which is different from the theoretical margin as I have to round each number to a full contract. on the last line you see that the position size is already appearing before there is a trade intitiated. As the maximum size is limited to 100 contracts the number is 100. Without limitation that number would be higher.
1. Real Time Position Sizing - considers profits/losses acquired while the trading day is open 2. Equity Curve Crossovers - uses the slope of the equity curve to determine position sizing; it can also employ a stochastic indicator on the equity curve so when the fast stock is over the slow stoch then add to the position sizes....and vice versa.
%% 100% risk?? Depends on the market Risking 100% on REAL Estate could work well/ not that anybody with sense would risk their home like that. Much better to risk what one could afford to lose; your Mac Book illustration ''practically have won the lotto '' proves my point.'' IT does make sense to risk more, when, say someone is under 30 years , assume a life of 77.7+ years. It worked out well anyway but if i did it over again i would buy title insurance on RE investments; but 30 years was in hindsight just small sample. You write good stuff, make a million in 30 years , not like a lotto/LOL And i did buy title insurance on my home RE; who wants to risk thier home, that has any sense??