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Strategies & Market Trends : NetCurrents NTCS

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To: fut_trade who wrote (8593)3/29/2002 6:32:19 AM
From: Atin  Read Replies (1) of 8925
 
Actually yes, I am part of trendVUE. You showed up here first - but hey, that is cool. I was just saying that you might find answers more suited to system trading on the futures system trading thread!

> "Placing a constant trade size can prolong ones account. Scaling up in size can blow out ones account real fast. No one knows how the next trade will go."

Ok, so you're not saying that position sizing is wrong - just that changing the size up is wrong . . . interesting idea. How would you decide what your constant position is? Do you look into your account size at all? After all, someone with a 25K account and someone with a 250K account would have very different risk tolerances. How about volatility? A stock that moves 5% a day vs one that moves 0.5% a day would get the same dollar amount? Maybe the same number of shares? And what do you do when your 25K account goes up to 25M? You'd still be trading one lots?

You are missing a whole variable in your trading system development if you do not consider position sizing in your methods.

Reply on the Systems thread if you prefer and would like to hear other responses rather than just trendVUE related ones. Especially since we do think that position sizing is important and that people with different risk tolerances need to be trading different numbers of contracts.

-Atin
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