Well that has posed a bit of a dilemma for me during those good times.
1) Do I take 1.5-2% fixed fractional positioning as my account size increases
2) Do I use a lower fixed fractional percentage of account and take as many trades as capital allows i.e. more diversified.
So far I've taken option 2, but not sure how extreme to take this.
Well that has posed a bit of a dilemma for me during those good times.
1) Do I take 1.5-2% fixed fractional positioning as my account size increases
2) Do I use a lower fixed fractional percentage of account and take as many trades as capital allows i.e. more diversified.
So far I've taken option 2, but not sure how extreme to take this.
I'd work at it differently.
I want to be on the trades that are running with momentum.
Rather than having more trades with less on each---your diversification is going to decrease risk but take away leverage by diluting capital in trades that are out performing.
Leave some capital aside so you can pyramid.
You have seen the dramatic difference to your portfolio
When you get it right and the way to squash risk if your
Trade goes pear shaped.
If you think about it you know what to do!
MFG would be out at break even.
Now that is an example of getting on an opportunity and then minimizing risk.
A whole new question but a question that first crossed my mind when we traded the telcos TLS AMM MTU ....
Taking the opposite side of the trade appearing to top out? I know short setups differ from longs but worth considering maybe.
With the telcos or banks recently I had longs and got out as it looked toppy. Shorting them in conjunction with XAO analysis would have been smart.
Could work for others...
Might be worth me looking into in a bit more detail. Things can fall quickly.
I'll analyze taking the opposite trade vs waiting for a test.
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