Sizing a Book of Strategies
Once you run more than one strategy, ‘how big per trade?’ becomes three different questions. A retail-friendly map of how the pros layer them.
Running a single strategy, sizing has one question: how big is each trade? The moment you run two or three — say a breakout system, a mean-reversion system, and a longer-term trend follower — sizing quietly splits into three separate questions, each with its own right answer. Most traders never notice the split. They pick a dollar amount per strategy that "feels right" and move on, which is exactly how a book of decent strategies ends up over-leveraged and fragile.
The three layers of sizing
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