How do you know when to reduce your position size?

FTC Community TeamStaff17 Sept 202695 views

Most traders have rules for increasing size and none for reducing it. Yet the best time to trade smaller is exactly when it feels wrong: during losing streaks, after big wins, and into major events.

How do you know when to reduce your position size? — drawdown and recovery diagram — An equity curve during a drawdown and its recovery

What triggers your size reduction?

How do you know when to reduce your position size? — moving average crossover diagram — A fast moving average crossing a slower one

the conditions you use
how much you cut and for how long
a time cutting size saved you

The drawdown guide makes the case mathematically.

Comments

Loading comments…