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Hi Mike,
I’ve read 2 of your books (“Complete TurtleTrader” and “Trend Following 5th ed”) and they’ve converted me from the Daytrading Dark Side. Your books are comprehensive and I started implementing turtle rules.
But I still have one question: I know each trade should be 1% of capital, but how much of the total account should I deploy at any one time? For example, if I have a $10,000 account, I know that no one trade should risk more than $100. But I’m also supposed to trade every signal. If I’m looking at commodities (ETFs), Forex, and stocks, I quickly get at least 50 trading signals for either System 1 or System 2. At 1%, that’s 50% of my capital deployed.
Are there any turtle rules for how much capital I should deploy, or perhaps the better question, what percent of my capital should I always hold back so that I survive if all investments tank?
Thanks for all the work you’ve put into this. I would never have learned about it if not for your books.
Jack M.
I do help A to Z clients understand trend following and trend following position sizing. The short answer is you use a structure of units, whereby each unit will be a %, ie. 1-2%, etc. Then you have a max number of units to deploy at any one time. That’s to start.
How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.
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