Question on position sizing for new strategies

asked by u/sneha_khan · 17d · 2 answers

Hey everyone, fairly new here and just getting my feet wet with a couple of different approaches, particularly around options spreads. I'm trying to figure out a good way to scale into new strategies without blowing up my account if I've misjudged something. When you're testing out a new system, how do you typically manage initial position sizing to control downside while still getting a realistic feel for the strategy's performance?

Join the full discussion

Top answers

  • u/kittipongsangthong· 22 pts· 17d

    That's a smart question to ask early on. I usually start with the absolute minimum number of contracts or shares my broker allows for a new strategy, even if it feels tiny, just to see how it behaves in real time before scaling up.

  • u/xiu.xu· -2 pts· 17d

    Starting small with new strategies, especially options, is always a good idea. Are you defining "small" as a percentage of your total trading capital, or as a fixed dollar amount per trade regardless of account size?

Related questions