Van Tharp – The Power of Position Sizing Strategies

About Course:

Stop searching for the Holy Grail trading system!

Knowing how to interpret the SQN score for your trading systems allows you to develop position sizing strategies for “good enough” trading systems and still reach your trading objectives! A must for anyone interested in improving their trading through Van Tharp’s Position Sizing Strategies!

You will learn:

• 1. What good objectives look like
• 2. How the SQN score is calculated and applied to trading systems
• 3. What kind of position sizing strategies will work for your objectives and for your systems.
• 4. You will learn how to use several Microsoft Excel-based tools including a Monte Carlo simulator in order to decrease the uncertainties for the strategies you select.

Three Key Elements:

All of those tasks above are good tasks. And actually, all of those tasks are completely necessary for trading successfully. How well, though, would you say that the activities listed above help you meet your objectives? You could be taking care of every one of those areas but not making the kinds of returns that will meet your objectives. You may be staying busy with a lot of trading activities, but you may be spinning your wheels in relation to making more money, to reaching retirement, to achieving financial freedom, or whatever else your trading objectives might include. Learn how to develop and employ effective position sizing strategies, each one tailored for each of your systems so you can have some confidence in reaching your objectives.

How do you craft customized position sizing strategies?

By focusing on three key elements and following a process to maximize your chances of reaching your objectives.

What are those three key elements to know about?

1. Your Trading Objectives.

•  Are they written down? Are they complete?  Do they fit you?  Do they drive everything you do in your trading business?

2. 2.  Your Trading System Performance.

• Do you have performance measurements by market type for each trading system? Have you selected your current systems through some set of defined criteria? Do you monitor your systems’ performance to ensure they are generating what you would expect them to and “behaving” as you expect?

3. Your Position Sizing Strategies.

• Your position sizing strategies form the critical link between your trading objectives and your trading system. You design and create position sizing strategies specifically to help you meet your objectives. In fact, they are the primary drivers for your trading to meet your objectives.