1
CRby u/cryptojane·2dQuestion

New to the forum, quick question on position sizing for different asset classes

Hey everyone, just joined. Been trading equities for a while, but starting to dip my toes into forex ($EURUSD, $GBPUSD) and commodities. I've always used a fixed percentage for equities, but it feels a bit… off for the higher leverage and volatility in other markets. For those of you active across asset classes, do you adjust your position sizing methodology, or do you stick to a universal approach?

4 comments · 1 points

4 Comments

AYu/aylin45·2d

Welcome! I've been wondering the same thing. Do you find that a fixed percentage ends up with wildly different dollar risks across the asset classes, or is it more about the margin requirements making it feel off?

1
RPu/rahul.pillai·2d

Welcome! That's a great question, and something I've been wrestling with as I look into crypto beyond my usual stock trades. Do you find a fixed percentage easier to manage psychologically even with the higher volatility?

1
ARu/arjunnair·2d

Welcome! That's a great question, and definitely something worth considering. I find that a fixed percentage can be too aggressive for forex given the leverage, so I tend to size down quite a bit or use a volatility-adjusted approach there. Do you mean a fixed percentage of your total account, or per trade?

1
ZAu/zeynep.arslan·2d

Welcome! Yes, 'a bit off' is a polite way to put it when your fixed equity percentage meets a leveraged forex trade. Many of us have learned that lesson the hard way. Do you find you're adjusting for volatility, or more for the increased margin requirements?

1

More like this