I’ve developed an approach for position sizing that allows for conviction-adjusted sizing based on a quantitative measure of statistical significance. I previously exclusively used volatility-adjusted sizing, which is an approach that attempts to keep a standard deviation move (in dollars) in any one position equal across all positions.
Position Sizing Based on Conviction or Volatility
Position Sizing Based on Conviction or…
Position Sizing Based on Conviction or Volatility
I’ve developed an approach for position sizing that allows for conviction-adjusted sizing based on a quantitative measure of statistical significance. I previously exclusively used volatility-adjusted sizing, which is an approach that attempts to keep a standard deviation move (in dollars) in any one position equal across all positions.