Welcome to the Dynamic Position Sizing Programme, which is a programme for advanced traders. I’m very, very excited for you – very excited that you have decided to follow and join the Dynamic Position Sizing Programme. I really and very, very honestly believe that you will benefit from this programme tremendously because dynamic position sizing, it’s been a true breakthrough for me. It’s a completely cutting-edge technique that we use in our hedge fund as well, and I think that once you implement dynamic position sizing to your existing trading strategies, for example, into the strategies that you have built with the Breakout Strategies Masterclass, you will see some amazing results very, very, very fast.
So what is dynamic position sizing, and why do you actually need it? As I already mentioned, it is a technique that we developed for our hedge fund, and it is one of the key reasons behind our success.
The key promise here is very simple. The probability of your trade being profitable is never constant. That’s very important to understand here at the very beginning. Although you have some average probability of your win, of trade being profitable, it is never constant. It constantly fluctuates. So in back-test reports, we look at some averages, but what if we look deeper into these averages?
What if we are not satisfied – just see some average, some number, and we start digging deeper?
Which is actually what we did on in our hedge fund.
And in that case, you will see that the probability fluctuates, and sometimes quite significantly. So let’s say that you have some average win per cent, which can be, let’s say, 60%, but sometimes it can be just 35%, and sometimes it can be even up to 75%. So it really, really fluctuates.
So the question is: How wise would it be to increase our position size on days with higher probability, and decrease the position size on days with lower probability?
Which is basically the key concept behind dynamic position sizing.
We will be changing our position sizing based on our probability, so if we have lower probabilities of success, we will decrease our position, and if we have higher probabilities of success, we will increase our position.
And after completing this programme, you’ll be asking, literally, how could you have lived without dynamic position sizing for so long?