MLiddy
01-04-2007, 06:50 PM
Hi,
I'm interested to know other people's thoughts on how many positions to hold at any given time. I trade CFD's on US, Aussie and recently UK Stocks, so all postions are semi-related. I risk 1% equity per trade, with my equity calculated as my closed account balance, along with all positions at their current stops. Due to the leverage of CFD's, and the small initial risk with MTP, i also make sure that total value of any position is under 50% of my equity at their value in the underlying market, to protect against the worst case scenario.
I restrict my positions by looking at the total risk to my account at any one time. I do this by holding up to 4 positions at once that still have a -1R risk, so if at any one time these all got stopped out, my loss would be -4R, or 4% of my account value. If one of these gets to breakeven, i'll then consider another trade if it comes up.
Would be interesting to hear any thoughts on this, or the way that others are doing it.
Cheers
Matt
I'm interested to know other people's thoughts on how many positions to hold at any given time. I trade CFD's on US, Aussie and recently UK Stocks, so all postions are semi-related. I risk 1% equity per trade, with my equity calculated as my closed account balance, along with all positions at their current stops. Due to the leverage of CFD's, and the small initial risk with MTP, i also make sure that total value of any position is under 50% of my equity at their value in the underlying market, to protect against the worst case scenario.
I restrict my positions by looking at the total risk to my account at any one time. I do this by holding up to 4 positions at once that still have a -1R risk, so if at any one time these all got stopped out, my loss would be -4R, or 4% of my account value. If one of these gets to breakeven, i'll then consider another trade if it comes up.
Would be interesting to hear any thoughts on this, or the way that others are doing it.
Cheers
Matt