Course Name: Position Sizing in Trading, Section No: 6, Unit No: 13, Unit type: Quiz
In fixed sum technique the following statement is twice wrong:
“The portion of the capital used for trading is fixed as the number of units is always fixed.”
- Amount is fixed, but portion is not. It is not, say, 0.8 of capital.
- The number of units is not fixed, it is changing depending on current price of the instrument.
Because of 1-2, the correct answer is B only, and not B and C as in your “correct” answer.