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You've been tracking your trading performance and wish to determine the expectancy from a trade you are planning. Assume you have $200,000 and wish to
You've been tracking your trading performance and wish to determine the expectancy from a trade you are planning. Assume you have $200,000 and wish to risk 1.00% on the trade and plan to place an 10% stop loss. The security you are following is trading at $40. Assume that you win 30% of the time and have a gain of 18% each win. When you lose, you lose 6%. How much of your $200,000 portfolio do you invest (position size)? $2,000 $8,000 $20,000 $18,750
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