V. 19:2 (18-22): Position Sizing With Monte Carlo Simulation by Michael R. Bryant, Ph.D.

V. 19:2 (18-22): Position Sizing With Monte Carlo Simulation by Michael R. Bryant, Ph.D.
Item# \V19\C02\015SIZE.PDF
Availability: In Stock

Product Description

Need to know how much to put on your next trade? You can figure it out with 95% reliability using this simulation technique.

Consider this: Jane and Joe started trading the same Standard & Poor’s 500 futures trading system at the same time. They each began with $100,000 and both followed the system exactly. But 12 months later, Joe’s account was worth $200,000, while Jane’s account was worth only $50,000. What was the difference in their trading? Position sizing. As his account equity increased, Joe increased the number of contracts in a near-optimal manner, resulting in a sharp runup in equity. Jane, on the other hand, increased her position size too quickly, so when the inevitable string of losses occurred, her account plunged, leaving her worse off than if she had risked less on each trade.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order