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• 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...

AUTHOR: Tom O'MalleyDATE: MAY 1996