The Potential Effect of Fixed Risk Position Sizing on Trading Strategies using a Stop Loss
Implementing risk-based position sizing into a trading strategy by carefully combining an intelligent stop loss, can help produce significant improvements in the equity curve. Risk-based position sizing standardizes the percentage risk of each trade, firstly helping to remove biases from the backtesting process, but secondly helping to smooth out live trading strategy growth.
In today's episode, I implement this type of position sizing for the Ichimoku strategy that has been the focus of study in this video series.
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This is Episode 15 in the Darwinex 'Spotlight on Trading Indicators' Playlist: • Spotlight on Trading Indicators
Video Contents:
00:00 Risk-Based Position Sizing Using a Stop Loss
00:14 Why Darwinex?
01:09 Strategy Improvements Using Standardized Trade Risk
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Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the Darwinex presenters) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk Disclosure: https://www.darwinex.com/legal/risk-d...