Any difference for position sizing on Trend and Range market

Discussions about Money Management and Risk Control.
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oem7110
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Any difference for position sizing on Trend and Range market

Post by oem7110 » Sat Apr 06, 2013 11:49 am

Does anyone have any suggestions on any difference for position sizing (money management) on Trend and Range market?
Thanks in advance for any suggestions

sluggo
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Post by sluggo » Sat Apr 06, 2013 1:07 pm

I suggest it is useful to separate the "trend market" trading rules, from the "range market" trading rules. I suggest it is useful to treat these as two completely independent trading systems with completely independent entries, exits, and position sizing.

Then experiment with both systems. Try each one with the wide variety of position sizing algorithms available as "Risk Manager" and "Money Manager" scripts in Trading Blox (or other system simulator software), and choose the one(s) that are most pleasing to you.

In real trading with real money, you'll be trading these two systems simultaneously. It probably won't happen very often that the TM system and the RM system have positions at the same time ... but, it might.

oem7110
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Post by oem7110 » Sat Apr 06, 2013 6:08 pm

sluggo wrote: ...
In real trading with real money, you'll be trading these two systems simultaneously. It probably won't happen very often that the TM system and the RM system have positions at the same time ... but, it might.
For range market, do we need to consider position sizing? since the target and stop levels are so closed, it should not be any chance to add any addition position at all, will the position be 1 all the time for range market?

Do you have any suggestions?

Thanks you very much for any suggestions

huss1652
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Post by huss1652 » Wed Apr 10, 2013 3:30 pm

Position sizing should always be considered whenever placing a trade. How do you define position size?

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