All of those tasks above are good tasks. And actually, all of those tasks are completely necessary for trading successfully. How well, though, would you say that the activities listed above help you meet your objectives? You could be taking care of every one of those areas but not making the kinds of returns that will meet your objectives. You may be staying busy with a lot of trading activities, but you may be spinning your wheels in relation to making more money, to reaching retirement, to achieving financial freedom, or whatever else your trading objectives might include. Learn how to develop and employ effective position sizing strategies, each one tailored for each of your systems so you can have some confidence in reaching your objectives.
How do you craft customized position sizing strategies?
By focusing on three key elements and following a process to maximize your chances of reaching your objectives.
What are those three key elements to know about?
1. Your Trading Objectives.
- Are they written down? Are they complete? Do they fit you? Do they drive everything you do in your trading business?
2. Your Trading System Performance.
- Do you have performance measurements by market type for each trading system? Have you selected your current systems through some set of defined criteria? Do you monitor your systems’ performance to ensure they are generating what you would expect them to and “behaving” as you expect?
3. Your Position Sizing Strategies.
- Your position sizing strategies form the critical link between your trading objectives and your trading system. You design and create position sizing strategies specifically to help you meet your objectives. In fact, they are the primary drivers for your trading to meet your objectives.
These are the main sections of the course:
- The Power of Position Sizing Strategies
- An Interview with Dr. Van Tharp
- Creating Effective Trading Objectives
- Understanding SQN
- Developing Your Position Sizing Strategies
- Intermediate Position Sizing Strategies
- Simulating System Performance
- Stepping Through A Simulation Process
- Case Study Exercises
- Conclusion
- Bonus Section (on modifying the spreadsheets)
