I've been trying to get a handle on $HSI lately, and the swings are just brutal. My usual risk-per-trade percentage feels off; either I'm too small to make anything or one bad whip-saw takes out way more than intended. For those more seasoned with Asian equities, particularly in these choppy waters, how do you adjust your position sizing without just guessing?
For HSI, you need to tighten stops and reduce your base position size. The volatility demands less capital per trade if you want to maintain the same risk percentage. Forget about your 'usual' if it's not working in this environment.
Ah, the HSI, where 'volatility' is often a euphemism for 'will your stops hold for more than five minutes?' I've found adjusting not just the percentage, but also the absolute dollar risk, can help. Sometimes it's better to accept a smaller potential gain to avoid a larger potential headache, especially when the market seems to be actively hunting stop losses.
It's a common issue with highly volatile markets. Have you considered adapting your position sizing based on the daily average true range (ATR) rather than a fixed percentage? It can help normalize risk across varying volatility levels.