Position Sizing in Trading

Yes, you will be awarded with a certification from QuantInsti after successfully completing the online learning units.

No, there are no live or classroom sessions in the course. You can ask your queries on community and get responses from fellow learners and faculty members.

Yes, you can ask your queries related to the course on the community: https://quantra.quantinsti.com/community

Fast-speed internet connection and a browser application are required for this course. For best experience, use Chrome.

There is no admission criterion. You are recommended to go through the prerequisites section and be aware of skill sets gained and required to learn most from the course.

We respect your time, and hence, we offer concise but effective short-term courses created under professional guidance. We try to offer the most value within the shortest time. There are a few courses on Quantra which are free of cost. Please check the price of the course before enrolling in it. Once a purchase is made, we offer complete course content. For paid courses, we follow a 'no refund' policy.

Some of the course material is downloadable such as Python notebooks with strategy codes. We also guide you how to use these codes on your own system to practice further.

We focus on teaching these quantitative and machine learning techniques and how learners can use them for developing their own strategies. You may or may not be able to directly use them in your own system. Please do note that we are not advising or offering any trading/investment services. The strategies are used for learning & understanding purposes and we don't take any responsibility for the performance or any profit or losses that using these techniques results in.

Quantra environment is a zero-installation solution to get beginners to start off with coding in Python. While learning you won't have to download or install anything! However, if you wish to later implement the learning on your system, you can definitely do that. All the notebooks in the Quantra portal are available for download at the end of each course and they can be run in the local system just the same as they run in the portal. The user can modify/tweak/rework all such code files as per his need. We encourage you to implement different concepts learnt from different learning tracks into your trading strategy to make it more suited to the real-world scenario.

No. We provide you guidance on how to create strategy using different techniques and indicators, but no strategy is plug and play. A lot of effort is required to backtest any strategy, after which we fine-tune the strategy parameters and see the performance on paper trading before we finally implement the live execution of trades.

Lifetime access means that once you enroll in the course, you will have unlimited access to all course materials, including videos, resources, readings, and other learning materials for as long as the course remains available online. There are no time limits or expiration dates on your access, allowing you to learn at your own pace and revisit the content whenever you need it, even after you've completed the course. It's important to note that "lifetime" refers to the lifetime of the course itself—if the platform or course is discontinued for any reason, we will inform you in advance. This will allow you enough time to download or access any course materials you need for future use.

There are various factors that can be used to determine the position size. For example, you can set up the size of trades depending on your risk appetite. You can use the past volatility of the underlying market as a measure of risk and set up the size of trades. Other position sizing methods, such as Constant Proportion Portfolio Insurance (CPPI) and Time Invariant Portfolio Protection (TIPP), can be used to size the trade. In these methods, you can enjoy the upside potential while hedging the exposure to downside risk. Various other position sizing techniques, such as kelly criterion, optimal f, etc., are discussed in the Position Sizing in Trading course.

If you have a trading strategy that becomes consistently profitable, you can start to look at increasing the position size. Instead of abruptly increasing the size to a large value, you can incrementally increase the position size. For example, if you have been allocated 5% of your capital to a particular strategy. And the strategy becomes profitable; you can move to the next level and start allocating 10% to that strategy.

The size of stocks positions should depend on the amount of risk that you want to take on a position that is maximum risk per trade. For example, if you have $10,000 in your account and you want to risk 2% of the account, then you could risk up to $200 per trade. Another factor that can be taken into account is the volatility of stocks. If you have less volatile stocks in your portfolio, then a position size up to 5% can be suitable. For volatile stocks, the position size should be smaller.