Position sizing is key 🔑 that’s the aspect most traders lack. Do these 4 things:
1) Backtest your Edge
2) Identify your max CONSECUTIVE losses
3) Multiply that by 2/3x
4) Take positions that allow for you to stay in the game
Example
1) I backtested 200 trades
2) I had a max consecutive loss of 8 trades
3) I multiply 8x2 =16 trades.
4) I allow myself to take 16 trades in a row before blowing my account. I size accordingly
Day 2
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