The topic of position sizing is nothing new to traders and many have written, correctly so, that trading success has much more to do with money management than one would think at first blush. If you are trading a system, then you're in luck. There are robust methods for calculating position sizing based on the expectation of your system and other metrics, such as drawdown tolerance and profit motives. For discretionary trading, the formula is a bit more opaque, because your system's expectation is very difficult to pin down.If position sizing is boring, then read on, because this is not about position sizing. It's about learning stuff by doing stuff.
