Proper position sizing is the cornerstone of responsible risk management in trading. It's the art of deciding how much of your capital to commit to a specific trade. Effective position sizing allows traders to limit potential losses while optimizing the potential for profit. By discussing position sizing strategies, traders can learn to tailor their trade sizes to their risk tolerance and the specific conditions of each trade, reducing the chances of significant drawdowns and account blowouts.
What methods do you use commonly as standard to guard ur portfolio?
nighttalkerI found this video by ICT to be very useful in tailoring a plan for position sizing:
www.youtube.com/watch /> He offers a number of strategies, but I found...I found this video by ICT to be very useful in tailoring a plan for position sizing:
www.youtube.com/watch /> He offers a number of strategies, but I found one to be simple and effective in reducing drawdown. Essentially, you have a set percentage you're willing to risk, say, 2% of your equity. If your trade is successful, you stay at 2%. If you lose the trade, you halve your position size on the next trade to 1%. If you lose again, you halve your position size on the subsequent trade to 0.5% and so on. You only bump yourself back up to the higher percentages when you gain back the losses you took using the smaller position sizing. It helps you iron out problems in your strategy without experiencing massive drawdown.
The hardest part is sticking to it, because after a loss, it's common to want to risk more in order to gain back what was lost. Show more
ICT Forex - Considerations In Risk Management
IM Academy, Tradehouse, I Markets Live… the list goes on with these frauds educators. Stop paying for these poor knockoffs of my free lessons on Forex Tradi...
2 years ago
CoffeeShopCryptoWhile i will admit ICT is a popular dude. there is currently a lot of controversy around his strategies and proof of work. If there is another...While i will admit ICT is a popular dude. there is currently a lot of controversy around his strategies and proof of work. If there is another source you can guide our members to for something like this, id be happy to drop it into the newsletter or elaborate on it myself and publish something.Show more2 years ago
nighttalkerIt’s funny because while I know a lot of people credit ICT with helping them become profitable, most of his content has not resonated with me. I...It’s funny because while I know a lot of people credit ICT with helping them become profitable, most of his content has not resonated with me. I find him to be obnoxious, intentionally inscrutable, & kooky, but having said that, I don’t need to like someone to learn from them. I don’t know enough to call him fraudulent, but controversy surrounding him aside, I’ve been through a lot of his content. It’s rife with inconsistent information that makes it hard to develop rules around and base a strategy on, so I moved on. Just my experience and not trying to slag anyone who has found his content useful. This video about risk management is methodical and dry, and it’s really the only thing from ICT I found to be of practical use, which is why I shared it.
I’ll see if I can find another resource or articulate the concepts concisely, but as you saw with my other post, I typically don’t do concise. lol