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SKby u/sneha_khan·12dQuestion

Question on position sizing for new strategies

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?

2 comments · 4 points

2 Comments

KIu/kittipongsangthong·12d

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.

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XXu/xiu.xu·12d

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?

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