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Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: Atin who wrote (8594)	3/29/2002 7:09:36 AM
From: fut_trade	Read Replies (1) \| Respond to of 8925

"Ok, so you're not saying that position sizing is wrong - just that changing the size up is wrong . . . interesting idea." I thought we were talking about betting x one day and 3x another day. Otherwise I'm talking about a fixed percentage of the account. "You are missing a whole variable in your trading system development if you do not consider position sizing in your methods" If we are talking about betting x one day and 3x another day, then you are correct. In fact, gambling strategies make use of this. For example, detailed mathematical studies of blackjack have shown this to be effective. But with the market, a set-up that worked well in the past can stop working suddenly, and then the scale will work against you. I suppose scaling (x one day, 3x another day) can be used effectly in the market if one incorporates it into their trading strategy (that is if one puts a sufficient amount of effort into it), but I would rather focus on just finding the best set-ups - and leave trade size as a constant.