Made a couple of bad 'discretionary' trades today, and yet, they were placed for the right reasons. I need to manage my risk better. I'm getting some of the patterns down I need to identify, I just need to scale my share or contract amount to better suit my risk tolerance.
I'm trying to figure out a way to calculate stop based on share amount (versus account size) and current (perhaps expected) volatility. The higher the volatility the wider the stop. The higher the amount of shares the closer the stop. So, find some balance between share amount and volatility that my account can stomach.
Sounds good. Harder to implement.
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