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131: Morgan Slade – Strategy Development, Powered by Machine Learning

Chat With Traders

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How to Measure Your Risk Allocation

Aaron: How do you actually measure how good your risk allocation is? Is there any sort of gauge to help you decide whether you should move on to the next step or whether you need to put a bit more work into how you're allocating risk? Well I like trading Aaron so I'm usually in a hurry to start trading even if I don't have the best risk allocation scan and I find that until I really know my capacity for my strategy which I can't really figure out until I've traded. The world has changed a lot in the last 10 or 15 years in terms of execution because algorithms are so pervasive they've automated a lot of the execution tasks on the trading desks. A

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