Same size for every trade

[qxr1011]

Regardless of the size of the stop-loss?

regardless,

if talking about trading the same instrument and trader chooses to trade in certain periods accepting the volatility thereof, then he must choose the size for those games

looks like you u actually agree with me that size matters, and you just trying to adjust it accordingly to the fluctuating stop-loses

i assume the size for the worst case scenario ( the biggest stop-loss possible in playing periods), and i play it from the beginning to the end with the same size

the OP is less concern with stops he wants to increase size (and profits) with market going his way

personally i do not have time for all those manipulations i concentrate on make sure i do not miss something while situation develops

with the growth of the account trader then can gradually increase size of his position

 

[Xela]

regardless

You're varying your risk in proportion to the distance of the initial stop-loss, then. (I'm not telling you not to - I asked for clarification only because we disagree on this point, and you're not someone I normally disagree with.)

personally i do not have time for all those manipulations

Fair enough.

(And yes, we agree that size matters: I don't think I've never claimed otherwise, to be honest ).

 

[qxr1011]

You're varying your risk in proportion to the distance of the initial stop-loss, then

trader imho assumes the risk of the loss (in points) that the method allows in playing periods

what behind those points in terms of lots is just matter of trader's comfort zone in regard to his account size

 

[Visaria]

Wolves are coming to dissect this one lol, although I kinda agree.

Young puppies perhaps...older experienced wolves know I'm right.

 

[JackRab]

If you think in % and total exposure... then yes, you should size similar.

If you think in points and 1 contract = 1 contract... then.... you should probably look at other career options....

 

[lukas]

I agree with "the same risk in each trade approach". That sort of naturally adjusts the size you trade and the stop loss you set. For instance, I might see a setup that is screaming "Hey, I can put a 3-tick stop here, hence I can enter with my max size" which will be equivalent risk to "I need a stop of 6 ticks here, so I will only do half the max size". That kind of risk management is the best, IMO. Then there's the issue of how much to risk per trade but that's another story although the old "1% or less of your risk capital" seems a good choice

 

[Handle123]

I use same risk on a valid signal as not all signals are valid if software sees something wrong with signal based on recent past of volatility too high, becomes invalid signal. Yes, I know some love volatility, but I trade in direction of controlled markets.

As age and experience changes, the 50/50 changes of success changes due to better risk management, it changes actually a good deal but much depends on your risk tolerance or hedging in number of ways, options, stocks, futures etc...

For myself couple of patterns, not necessary chart patterns but loss patterns will alter size traded, ie, backtest 100,000 sample size of valid signals and you search for mean loss in a row and how often this is exceeded, it is often on same plain as averaging down which I always do in scalping and to a degree in day trading, if a signal is valid to take now, and seconds later at better price-all the better. None of this can for tell future losses or profitable trades, but like a casino, we wish to become the house and house seldom loses.

 

[d08]

First off, it depends on what you're trading. You should've specified you're talking about futures and forex. With equities your size is not only dependent on volatility but the liquidity as well.

 

[HobbyTrading]

If you admit each trade has the same probability of success, then is it reasonable to always use the same (maximum) size for every trade?

My trading is automated. The size of the position is based on both the forecast level ("how successful do I think this will be?") and on the volatility of the instrument versus my account size. Suppose I have two instruments A and B with same level of forecast but A has higher value volatility than B, will I take a smaller position in A than in B.