Hi Nizar S is a pity, otherwise the equity curve was going in the right direction. In situation like this where one stock took away most of your profit and it is a low price stock, though a dow. you would wonder if that stock was too volatile to be bought at the same position size as the rest. Have you tried volatility based position sizing? or apply a filter on low priced stocks.
I started out in trading early 2005 through managed funds.
November 2005 started in stocks through fundamental analysis.
After the 2006 May correction I learnt to use stops!
A few months afterwards I read Michael Covel's book and it was a real eye opener for me into what can be achieved through mechanical systems trading.
In 2009 I started looking seriously at short term automated trading through AmiBroker/IB as this would allow for all the benefits of short term trading (smoother equity curve, faster recovery from drawdowns, etc) without the associated screen time.
6 comments:
Ouch!
Why is that position so much bigger?
Hi Craig,
Not sure what you mean. It's not much bigger, the position is about $20k, pretty much in line with all other positions.
Duh, my ignorance knows no bounds...
Would it be possible to expand more on how you decide on position size?
Hi Nizar
S is a pity, otherwise the equity curve was going in the right direction. In situation like this where one stock took away most of your profit and it is a low price stock, though a dow. you would wonder if that stock was too volatile to be bought at the same position size as the rest. Have you tried volatility based position sizing? or apply a filter on low priced stocks.
Hi bookworm,
Interesting ideas. You're right, S is quite volatile, and you can easily see this by looking at the ATR in relation to the price of the stock.
This was no surprise to me though. I knew from backtesting that S does tend to provide big movements, both for me and against me.
Thanks for dropping by.
Hi Craig,
Position sizing is simply a 20% allocation of my intraday buying power to each stock.
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