TradersCALM - Simple Use of Position Sizing
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If you do not understand what persistence of direction and/or position size is all about, find out before using the table below.

Also to effectively use the table below, you need to know how the
risk of ruin you are comfortable with determines your maximum position size.     If you are not aware, for your unique situation, of these issues please do not use the table below as you are trying to run before you can walk - and as always - in the wrong hands powerful tools can be dangerous.

Persistence of
Direction
Implications for
Position Sizing
Over 55% Consider a trend-following style with your 'standard' position size; when persistence rate is significantly higher consider a small increase in position size.
Under 45% Consider a fading style with your 'standard' position size and when persistence rate is significantly lower consider a small in increase position size.

Under this topic more sophisticated uses of position sizing are discussed - follow the topic buttons to see more.
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