The Essential Job Of Position Sizing In Trading
Position sizing is the act of determining HOW MANY contracts to trade when a trading system gets a signal. It is one of the strongest ideas available to traders and yet frequently the least accepted. Position sizing should manage risk, enhance returns, and improve robustness through market normalization. Position sizing can end up being far more serious than where a trader buys or sells! But most trading systems and testing platforms either ignore position sizing or use it illogically.

