Forex Strategies and Tips

Adaptive Position Sizing

Adaptive Position Sizing is a term we coined to describe the trading technique of changing your position size (how many lots, micro-lots, units, etc.) you are trading with each individual trade.

Many traders pick a lot size to trade and stick with it for quite awhile. They may not even change it as they switch from one currency pair to the next.

Adaptive Position traders use the Advanced Calculator and change their lot size for each trade they take... and reap tremendous benefit.

If you don't adapt your position size with each trade, you may be making less profit than you could be.

If you don't adapt your position size with each trade, you may be taking larger losses than makes sense for your long term goals.

One Approach To Testing:  Randomized Trade Analysis

We were curious to see what the results of this different style of trading would be, so we constructed a spreadsheet model and did some careful analysis.

We found that in many instances, making just this one change of how position sizing was done resulted in so much more profit.

Get The Spreadsheet

Another Test Of  The Theory Of Adaptive Position Sizing

In the movie below we show you another of our tests using a slightly different spreadsheet we created.  We ourselves were actually very amazed at what we discovered.