5min chapter

The Trade Busters cover image

112 - Trend Following Plus Nothing w/ Jerry Parker

The Trade Busters

CHAPTER

The Importance of Dynamic Position Sizing

Sally Kohn: I don't do dynamic sizing. CTA's have put into their rules some of these ideas of dynamically every day after the first day you may add or subtract from the position based upon its correlation that you perceive changing amongst the other markets. So it's this almost continuous dynamic position sizing, which I wouldn't. She says she doesn't define risk as volatility; a volatility with big profits is fine. But if you're just going to say, okay, I'm going to risk a dollar, can lose a dollar on some trades, then why care about the bumpiness of the equity curve?Kohn: This is really an old school trend following. Some people

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