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[USER=50018]@Newt[/USER] thanks for suggesting this book and one section that struck a chord with me was Position Concentration as recently I had a number of winning positions but position sizes were diluted and gains were minimal so when I read this the timing was uncanny ( extract below )

POSITION CONCENTRATION
A big part of handling a winning stock correctly is properly scaling one’s position size. If you only want to make average market returns, then scale
your positions to a very small size, and your portfolio will act very much like a market index.

If you want to make big returns, then you absolutely must concentrate your capital in a strongly-trending
stock, and position sizes of 1 to 2 percent of one’s total portfolio equity are, to put it bluntly, quite wimpy from an O’Neil perspective. The O’Neil
method of pyramiding into strongly acting positions while weeding out weaker ones generally gets an investor concentrated in the right stocks
during a bull market cycle.

So for me this has resulted in me looking at 1. Pyramiding my positions 2. Less open positions.

How to apply this in a system? well I have not coded this yet but discretionary trading this way over the last couple of weeks has seen some positive results. So as usual more food for thought and the journey continues.

Thanks again

<blockquote data-quote="Trav." data-source="post: 1057662" data-attributes="member: 73740">[USER=50018]@Newt[/USER] thanks for suggesting this book and one section that struck a chord with me was Position Concentration as recently I had a number of winning positions but position sizes were diluted and gains were minimal so when I read this the timing was uncanny ( extract below )POSITION CONCENTRATION
A big part of handling a winning stock correctly is properly scaling one’s position size. If you only want to make average market returns, then scale
your positions to a very small size, and your portfolio will act very much like a market index. 

If you want to make big returns, then you absolutely must concentrate your capital in a strongly-trending
stock, and position sizes of 1 to 2 percent of one’s total portfolio equity are, to put it bluntly, quite wimpy from an O’Neil perspective. The O’Neil
method of pyramiding into strongly acting positions while weeding out weaker ones generally gets an investor concentrated in the right stocks
during a bull market cycle. So for me this has resulted in me looking at 1. Pyramiding my positions 2. Less open positions. How to apply this in a system? well I have not coded this yet but discretionary trading this way over the last couple of weeks has seen some positive results. So as usual more food for thought and the journey continues.Thanks again <img src="https://www.aussiestockforums.com/styles/default/xenforo/smilies/thumbsup.png"&nbsp; class="smilie" loading="lazy" alt=":xyxthumbs" title="Thumbsup&nbsp; &nbsp; :xyxthumbs" data-shortname=":xyxthumbs" /></blockquote>

[QUOTE="Trav., post: 1057662, member: 73740"] [USER=50018]@Newt[/USER] thanks for suggesting this book and one section that struck a chord with me was Position Concentration as recently I had a number of winning positions but position sizes were diluted and gains were minimal so when I read this the timing was uncanny ( extract below ) [INDENT][B][I][SIZE=3]POSITION CONCENTRATION[/SIZE][/I][/B] [SIZE=3][I]A big part of handling a winning stock correctly is properly scaling one’s position size. If you only want to [B]make average market returns[/B], then scale[/I] [I]your positions to a very small size, and your portfolio will act very much like a market index. [/I][/SIZE] [I][SIZE=3][/SIZE][/I] [SIZE=3][I]If you want to [B]make big returns[/B], then you absolutely must concentrate your capital in a strongly-trending[/I] [I]stock, and position sizes of 1 to 2 percent of one’s total portfolio equity are, to put it bluntly, quite wimpy from an O’Neil perspective. The O’Neil[/I] [I]method of pyramiding into strongly acting positions while weeding out weaker ones generally gets an investor concentrated in the right stocks[/I][/SIZE] [I][SIZE=3]during a bull market cycle. [/SIZE][/I][/INDENT] So for me this has resulted in me looking at 1. Pyramiding my positions 2. Less open positions. How to apply this in a system? well I have not coded this yet but discretionary trading this way over the last couple of weeks has seen some positive results. So as usual more food for thought and the journey continues. Thanks again :xyxthumbs [/QUOTE]

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