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> As for bet-sizing, there are two parts of this problem:
>
> > Deciding how many contracts to trade on each trading signal
>
> > Deciding how much of your capital to allocate to each commodity
>
> You find that some trades will have a higher reward-to-risk-ratio
> than others so you need to trade more contracts for those cases. This
> obviously will improve the overall profitability.
I am interested in thoughts about how to have some idea in advance which
trades will have a higher reward-to-risk-ratio. What you say certainly makes
sense, but I lack ideas for how to determine reward-to-risk ratio in advance
of a trade. I'm not sure it is possible. Any ideas?
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