hi Ibza
i like a formulated method to position so i like the Kelly criterion.
https://www.investopedia.com/terms/k/kellycriterion.asp
1. first thing is track you last X trades to workout your winrate and winratio.
lets say im using a breakout strategy and over time i have calculated a
(win rate and winratio definition in link).
winrate 55%
winratio 1.4
kelly = winrate - ((1 - winrate) / winlossratio)
kelly = .55 -((1-.55)/1.4)
kelly = .23
so i would use 23% of your portfolio on that strategy
Thats ok for short term but for me as someone who like to scalp i use a dollar value per pip. like a 50 to 100 dollars per pip.
this way no matter what price the stock is i can control my risk better.
hope it makes sense.
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