I started the core strategy back in December using 15% stops. I stopped out, opened new positions, and repeated until now I only have 4 open positions. I see my entries have been smaller and smaller $ amounts due to a net drawdown during this period. Do I try to maintain 10 positions or should I aim for fewer positions but with similar dollar amounts?
In this market, fewer positions and more cash might be appropriate. Another approach you can take here, depending on the share price of the top name and the typical dollar amount you put in one, is to sell OTM puts on a top name instead of buying it. I did that with INOD last year when we had that Japan panic. If FUTU were a $10 stock, I'd do it with that too.
I started the core strategy back in December using 15% stops. I stopped out, opened new positions, and repeated until now I only have 4 open positions. I see my entries have been smaller and smaller $ amounts due to a net drawdown during this period. Do I try to maintain 10 positions or should I aim for fewer positions but with similar dollar amounts?
In this market, fewer positions and more cash might be appropriate. Another approach you can take here, depending on the share price of the top name and the typical dollar amount you put in one, is to sell OTM puts on a top name instead of buying it. I did that with INOD last year when we had that Japan panic. If FUTU were a $10 stock, I'd do it with that too.