@nithin You recently shared a post by Jerry Parker in which he recommends reducing position sizing during drawdowns. I’ve noticed you also advocate this approach. However, I find the practical implementation challenging as a retail trader—not just in cutting position size during tough periods, but also in scaling up effectively when things are going well.
Do you have a position sizing algorithm or framework that you could share? Ideally, something where I can input the key stats of my system and get guidance on the appropriate position sizing. Thanks,
Ah, I don’t trade anymore. Actually haven’t taken a serious trade since 2009. Nikhil does all the trading.
You shouldn’t use any cut-and-paste version of this; figure out what works best for you. The general idea is that as and when losses increase, it makes sense to go easier on trades. Similarly, it makes sense to increase the trade size as and when you are profitable.
Also, atleast 90% of the trades you need to be trading smaller than your usual size, and essentially increase it when a bunch of things fall in place.
