What percentage of your net worth do you trade?

Was scalping smallcaps with up to 200% leverage. Did very good at the start where I turned $500 into $3600 in 3 days. Then a bad day came up (where I also messed up my hotkeys) and blown 90% of my account. That's when I decided I needed to take risk management more seriously.

Decided, I will implement a 2-5% rule next time and just build my account a little slower. Higher than the standard recommendation but an drastic improvement from the 200% leverage where I can lose up to 10% on that position or more (in a worse case scenario) due to high volatility.

Although, the majority of my losses was likely between 2.5-10%. In hindsight, it was still very reckless. It just takes 5-7 losing trades or around 30% of my account to trigger and leave me in a compromised mental state to trade.

 

There are a bunch of ways to interpret the question.

*What percentage of your networth do you keep in brokerage accounts
*What percentage of your networth do you invest (maximum notional exposure)
*What percentage of your networth do you trade (turnover) in a given time period
*What percentage of your networth do you trade (maximum notional on a single instrument)
*What percentage of your networth do you risk on a single trade

personally,
~150%
~400%
~2000x/year
7.5%
1% 99.9 percentile

 

I use about 10 percent of the total, it suits me

 

Less than 30%

 

As a new trader, I am currently investing small amounts. Trying to see if I am able to make any profits out of them. It’s important to see first whether trading is really your thing before taking risk with bigger amounts.

 

About 5% to 10% of total net worth. If I blow up my account it will suck (and I'll want to kick the cat), but it won't kill me

 

The real question you need to ask your self is. How much money do you feel conferrable or willing to loss on every single trade you take.
because trading is more emotional and if your risk amount is to high you will be afraid to take a loss.
You can better start with a small amount and work your way up.

 

Have you ever blown your account? How does that feel?

 

100+% of net worth (core portfolio and trading strategies) including leverage but with volatility target monitored by my algo system.

 

I would like to know the best answer to this- Kelly or Optimal F or any other method?