What position size would you use based on following condition in general?
Does anyone have any suggestions?
Thanks in advance for any suggestions
Happy New Year
Case 1
Win% = 50%
Avg Profit = 100
Loss% = 50%
Avg Loss = 50
Position Sizing = 1 Unit
Case 2
Win% = 67%
Avg Profit = 100
Loss% = 33%
Avg Loss = 50
Position Sizing = how many unit should be used?
What position sizing should be used?
It doesn't matter what win/loss ratio you have. Same position sizing can be used for both strategies.
The position sizing algorithm is highly individual, depends on many factors.
There is not right or wrong answer.
And how many contracts you buy or sell depend also on the % of capital you are willing to risk on one trade and also depends on the bigpointvalue of the future contract.
The position sizing algorithm is highly individual, depends on many factors.
There is not right or wrong answer.
And how many contracts you buy or sell depend also on the % of capital you are willing to risk on one trade and also depends on the bigpointvalue of the future contract.
This question has been asked before . . . . in fact it was asked by YOU on July 17th, 2012.
Your title for that thread was, "How to determine the positions size for each trade?"
Please check this link
viewtopic.php?t=9666&highlight=kelly
Perhaps the Hogwarts spell mentioned in the above link has caused you to forget that particular thread
Your title for that thread was, "How to determine the positions size for each trade?"
Please check this link
viewtopic.php?t=9666&highlight=kelly
Perhaps the Hogwarts spell mentioned in the above link has caused you to forget that particular thread
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