Money Management (1/2)

Position level:

• Sizing in % of trading capital
• Checking volumes and liquidity to avoid or limit slippage
• Maximum loss accepted per line in % of trading capital
• For which capital gains expectancy (notion of R multiple) ?
  -a priori (Expectancy / Risk t0) e.g. for selecting / marking potential open trades
  -a posterior (P&L / Risk) and reported in nR to assess closed trades and to further compile trading statistics (e.g. per sector)
• Tightening stops (micro) on positions depending on their volatility (++) as a side effect of portfolio global risk (macro) control to keep HCDD & DD within defined boundaries