Trading with a Variable Position Size by Tom O'Malley
ARTICLE SYNOPSIS ...Trading With A Variable Position Size by Tom O'Malley
Once a position has been put on, some traders will hold it at a constant size throughout the life of the trade, while other traders will vary the size. Which is better?
Once a trade has been initiated, some traders maintain a constant position size throughout the life of the trade,
while others believe they can enhance returns by varying their position size according to predefined rules. One philosophy dictates that a significant price move in the profitable direction indicates a smaller likelihood of further profitable price moves and th...