Initial capital is $15000, and keep position sizing at 5000 if capital is growing steadily, I would like to know on when to increase position sizing and how much to increase position sizing.
Does anyone have any suggestions?
Thanks in advance for any suggestions
When to increase position sizing?
Re: When to increase position sizing?
I suggest you invent four or five position size increasing rules, and try them out in backtesting simulations.
Identify the two rules whose backtest results please you the most. Trade half of your money using rule A, and the other half of your money using rule B. For diversification.
Identify the two rules whose backtest results please you the most. Trade half of your money using rule A, and the other half of your money using rule B. For diversification.
Re: When to increase position sizing?
Thank you very much for suggestions :>
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Re: When to increase position sizing?
Your position size increase in basically your own idea only you can decide weather to increase it or not for that you need to follow your guts, But I can give you a advise with the decision. If you think that your capital is increasing and its optimum time to increase the position size then formulate all the possibilities that can take you back and once you have completed this feasibility study increase your position size to a minimum of 10% of capital rise or to a maximum of 30% of your capital rise
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Re: When to increase position sizing?
Thank you for suggestions.
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Re: When to increase position sizing?
Personally I use always fiexd % of my current account. You stay always tuned to the size of your account. If you prefer different % for different trading systems you could also split the account into two and grow them separately.oem7110 wrote: ↑Mon Jan 12, 2015 3:53 pm Initial capital is $15000, and keep position sizing at 5000 if capital is growing steadily, I would like to know on when to increase position sizing and how much to increase position sizing.
Does anyone have any suggestions?
Thanks in advance for any suggestions
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Re: When to increase position sizing?
Great advice, thank you.sinkpretend wrote: ↑Fri May 08, 2015 10:34 am Your position size increase in basically your own idea only you can decide weather to increase it or not for that you need to follow your guts, But I can give you a advise with the decision. If you think that your capital is increasing and its optimum time to increase the position size then formulate all the possibilities that can take you back and once you have completed this feasibility study increase your position size to a minimum of 10% of capital rise or to a maximum of 30% of your capital rise