How to determine the positions size for each trade?

Discussions about Money Management and Risk Control.
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oem7110
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How to determine the positions size for each trade?

Post by oem7110 » Tue Jul 17, 2012 2:09 am

Based on following results, I would like to know how to determine the position size for each trade, on the other words, what percentage of equity should be used for each trade?
Does anyone have any suggestions?
Thanks in advance for any suggestions

Winning percentage: 70%
Average Win: 150
Losing percentage: 30%
Average Lose: 100

sluggo
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Post by sluggo » Tue Jul 17, 2012 8:24 am

Many people trade a "portfolio" of instruments and thus have more than one position at a time. For these people, statistics about individual trade outcomes are less important than statistics about daily, weekly, and monthly returns from holding numerous simultaneous positions. Trading Blox and other advanced testing platforms are built from the ground up to accurately account for multiple simultaneous positions, because that is how real people trade in real life using real money.

Aaron01
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Re: How to determine the positions size for each trade?

Post by Aaron01 » Tue Jul 17, 2012 12:56 pm

oem7110 wrote: Winning percentage: 70%
Average Win: 150
Losing percentage: 30%
Average Lose: 100
Does anyone have any suggestions?
Yes, you may wish to look into developing systems with a lower win% but a higher avg win:avg loss. Of course, this assumes your utility is geared towards increasing your account size versus increasing your ego...

oem7110
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Re: How to determine the positions size for each trade?

Post by oem7110 » Thu Jul 19, 2012 2:20 am

Does Kelly Formula work for my case?
Thanks everyone very much for any suggestions

rhc
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Post by rhc » Fri Jul 20, 2012 12:51 am

These are very good numbers.
Assuming these good numbers stay static, the Kelly Kalculator, found at
http://www.albionresearch.com/kelly/default.php ,reckons you should be betting 50%!! of your capital on each trade to guarantee an 18.38% account increase (on average) per trade. (sse image below)

To quote Dirty Harry. . . . . “Are ya feelin’ lucky?â€

babelproofreader
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Post by babelproofreader » Fri Jul 20, 2012 9:38 am

When it comes to the Kelly Ratio I've always liked this series of online tutorials.

rhc
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Post by rhc » Sat Jul 21, 2012 1:17 am

rhc wrote:****Hmmm, Can't seem to post an image here. This forum section contains no facility to do so****
moderator wrote:rhc may want to click the "quote" button to see how this was done -- then close the browser window

Thank you moderator, I can see what you have done.
I should have more correctly said that I am unable to post an "attachment" rather than an "image".

When I look to post in other areas of the forum ("Diversions & Amusements" for example) I see the "Attachment posting Control panel" which gives me the option to "Add an attachment"
In this area of the Forum (i.e. "Money Management") I do not see this panel and hence cannot post an attachment.
Has this facility been disabled for this section of the Forum?

sluggo
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Post by sluggo » Sat Jul 21, 2012 12:42 pm

It works for me. Perhaps someone at Hogwarts has put a spell on you?
Attachments
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rhc
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Post by rhc » Sun Jul 22, 2012 7:27 am

re: Hogwarts spell.
This cannot be the cause.
I know this because I recited the counter spell "Finite Incantatem" three times and then upon checking the Forum the problem was still there.
It must be something else.

I will attach 2 images below that show what I am seeing . . . . oops! forgot . . . . . unable to post attachments here.
So I will do it in the "Diversions and Amusments" instead.

Please see this thread below;
viewtopic.php?t=9677&highlight=

oem7110
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Re: How to determine the positions size for each trade?

Post by oem7110 » Mon Jul 23, 2012 7:42 am

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Last edited by oem7110 on Mon Jul 23, 2012 8:25 am, edited 1 time in total.

oem7110
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Re: How to determine the positions size for each trade?

Post by oem7110 » Mon Jul 23, 2012 7:46 am

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Last edited by oem7110 on Mon Jul 23, 2012 9:07 am, edited 12 times in total.

oem7110
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Re: How to determine the positions size for each trade?

Post by oem7110 » Mon Jul 23, 2012 7:47 am

Why cannot I find any option to edit my post? Now I find it,
but there is no option to delete the post.
Any suggestions?

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