Australian (ASX) Stock Market Forum

position sizing

  1. N

    Fixed fractional position sizing in algo trading?

    Hello, I have a question I'm hoping to understand. With discretionary trading, you can use fixed fractional position size by calculating the risk because you already know where to put your stop loss based on previous support lines. E.g. Calculate so you put your positions to risk 1% of your...
  2. G

    My simple big idea of trading stocks!

    Here is my simple big idea about profitable trading if you wish to read! https://www.linkedin.com/pulse/systematic-trading-beliefs-vs-stocks-gautam-chapagain-dfp/?trackingId=EwzBqrslsfIVz9ftc7gN6g%3D%3D What's yours? G.
  3. D

    Position size AFL help needed

    The system I am testing opens random number of positions every day (Long only), and closes at the end of the day (yesterday bought 4 stocks, today bought 10 stocks, etc.). I am trying to allocate the same % of equity to each position, but since the number of positions is different every day I am...
  4. V

    Position sizing and Portfolio Management for fundamental/value investors

    Like many value investors I have a tendency to use fairly loose and arbitrary position sizing and portfolio management. I have a concentrated portfolio and tend to base my position sizing on: -How risky is the investment? -What is the possible/probable return profile of the investment? -How...
  5. M

    Position size advice for first time investor

    Hello everybody, I'm a first time investor, hoping to put about $20,000 into various shares and then continue to add more contributions to my portfolio as time goes by. I've tried to read up on various investing strategies, but I've become a little confused by position size as suggested by...
  6. Gringotts Bank

    Van Tharp's Position Sizing Game

    I've just downloaded and had a play with this. First 3 levels are free. I don't get it! What can be learnt from this other than don't go over 2% and don't go too much under 1%? Am I missing something? Why does he make it so that you have to sit there with your calculator entering the...
  7. T

    Position Sizing with XAUUSD, XAGUSD and WTI

    How do we work out position sizing with XAUUSD, XAGUSD and WTI? I like to use a fixed dollar amount for my risk. What I do to work out my position sizing when I trade fx pairs is: Say I wanted to risk $50 on a trade and my stop loss distance is 72pips, I would: Risk amount / Stop Loss...
  8. S

    Position sizing high win rate systems

    Hey guys, One thing I have noticed with high win rate systems is that the equity curve has the tendency to look like the stockmarket, i.e. slow steady climbs up punctuated by steep rapid declines followed by slow steady climbs up. Whereas the opposite is true for low win-rate systems...
  9. R

    Liquidity and Position Sizing

    Hi, I am currently (still) working on my first mechanical trading system and just revisiting how I manage liquidity and maximum position sizing, and whether there is a better way. My trading system is a short term mean reversion system, with the average trade being 4 days. I trade only the...
  10. J

    Position Sizing Confusion - Help Please!

    Hi, I am currently looking to design a trading system and am reading various literature on all aspects of this. One concept that has confused me a little is the % volatility model of position sizing (ps). My current understanding is based on the Van Tharp explanation and my issue is this...
  11. R0n1n

    Amibroker Money Management/Position Sizing

    guys, I have been testing a system with simple buy and sell rules and I was wondering how would the system perform with my Money Management and Position Sizing rules. So I looked in the help files and found the following code. The rules I follow are: For entry: total fund: $100,000 every...
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