Trading is a probability game.
But the probability of the success of each trade changes every single time.
While the market conditions of today may reduce the probability of a trade by 50%, tomorrow the conditions may increase the probabilities.
So, it doesn’t matter what trading system or strategy we trade… we cannot treat all trades equally.
If a trader has a proper understanding of this, it can be leveraged to improve performance, sometimes radically.
How, you may ask?
Dynamic position sizing (DPS).
It’s an idea that goes far beyond the conservative way of thinking in trading.
It’s a simple but out of the box idea that can make a huge impact in your trading… if it’s applied correctly.
So, here’s what you’ll discover in today’s podcast:
- What is DPS and how you can apply this cutting-edge technique to improve your drawdown and overall profit,
- The DOs and DON’Ts of applying DPS to avoid lowering your overall trading performance,
- What you need to do to avoid overfitting your strategies when applying this technique,
- And much more!
“In trading, we always have to think in probabilities. Trading is a probability game.” - Tomas Nesnidal Click To Tweet “Think out of the box. Try crazy stuff. Traditional ideas don’t cut it anymore.” - Tomas Nesnidal Click To Tweet “Robustness testing is your first edge in trading, and the second one is dynamic position sizing.” - Tomas Nesnidal Click To Tweet
– Curious on how to enhance your trading using this cutting-edge technique? Download this free ebook now and start making a difference in your trading.
Do you have any trading questions you’d like answered? Submit them here, and we may cover them in a future episode!