The Power of Position Sizing Strategies – Van Tharp

The Power of Position Sizing Strategies by Van Tharp

Stop searching for the Holy Grail trading system!

Knowing how to interpret the SQN score for your trading systems allows you to develop position sizing strategies for “good enough” trading systems and still reach your trading objectives!

A must for anyone interested in improving their trading through Van Tharp’s Position Sizing Strategies!

You will learn inside The Power of Position Sizing Strategies:

• What good objectives look like
• How the SQN score is calculated and applied to trading systems
• What kind of position sizing strategies will work for your objectives and for your systems.
• You will learn how to use several Microsoft Excel-based tools including a Monte Carlo simulator in order to decrease the uncertainties for the strategies you select.

How to Develop Powerful Position Sizing Strategies.

In this home study course, students will:

• Calculate your trading system’s System Quality Number score to measure its performance.
• Apply the SQN® score to determine which position sizing strategies will help you reach your objectives.
• Learn a simple process for developing a position sizing strategy that you can use for each one of your systems.
• Use a Monte Carlo simulator to see how different position sizing strategies affect your equity curve.
• Evaluate the effectiveness of a position sizing strategy by equity returns and drawdowns so you can reach your objectives.

Using your system’s simulated results and an Excel-based Monte Carlo simulator, you will be able to test several simple position sizing strategies for their effects on your equity curves.

All in the Position Sizing Strategy:

Several years ago at a Van Tharp Institute workshop in Sydney, one of the students talked about a recent experience.

He had been working some of his numbers one night when he had an epiphany –

“. . . it was all in the position sizing strategy . . .”

He realized he could reach all of his financial goals by applying particular position sizing strategies to his current systems– and he started to cry. He explained that they weren’t tears of joy, they were tears of frustration. He shared how he had had the support of his wife for the previous eight years while he had worked very hard on improving his trading, that is, he had been trying to improve his few trading systems, but that effort had yielded little growth in his equity. Part of his frustration was realizing that effective position sizing strategies applied much earlier could have vaulted him a few years ahead of his retirement plans. We hope to save many other traders a few years and a few tears of frustration through this Elearning course.

All of the Pieces, Except One…

Let’s say you have some objectives and you have some results from trading your systems. Let’s go so far as to say that in your trading business, you are rock solid in having excellent objectives and how to generate consistent results from your trading systems – but maybe you don’t really know how to make the critical connection between those two and “get the job done” and actually reach your trading objectives.

E-Learning Course Topics:

– SQN Formula:

We will look at the idea behind the formula, the variables required, and how and why it works to help you understand your system’s performance.

– SQN Formula Variations:

There are two primary versions of the SQN formula for evaluating systems. You will understand both versions and when to apply each of them. The two variations typically provide very different scores – each of which is highly valuable in different situations – though possibly dangerous when used in the wrong context.

– Types of R Multiple Distributions:

Different kinds of trading systems generate different kinds of R-multiple distributions. The type of distribution affects the SQN score for the system. You will learn how and why different aspects of trading systems affect the SQN score as well as consider what type of R-multiple distributions might better align with your trading objectives.

– The Benefits of High SQN Scoring Trading Systems:

When you trade a system with a high SQN score, you have more flexibility using position sizing strategies to help you meet your objectives. How and why this is so will be covered in depth. Also covered – what is a “high” score and what is a “good enough” score? The answer is, “It depends” and we’ll talk through the dependencies.

SQN – A Simple Way to Craft Effective Position Sizing Strategies

Understand how to use the SQN score to develop position sizing strategies that fit different objectives. You can get as complex as you like in this area but the SQN score simplifies the process overall.

– Three Broad Categories of Position Sizing Strategies:

All position sizing strategies are not created equally. Van has classified three main types, and you will explore the differences.

– Which Category to Use:

You are likely to find that one category of position sizing strategies helps you meet your objectives over the other two. You will examine the reasons for concentrating on your types of strategies versus utilizing two or three types.

– How to Apply Seven Specific Position Sizing Strategies:

We will study seven specific and very useful position sizing strategies in depth. In addition, we will also cover several variations for each of these strategies has several variations to know about — which we will also cover in-depth.

– How To Calculate Your Max Portfolio Heat:

Portfolio Heat refers to the total risk you have exposed in the markets through your open positions. If you don’t manage this specific kind of risk, an external event that impacts the entire market can wipe you out. Each one of your position sizing strategies needs to incorporate this important element of risk control, and we’ll cover how to do that.

– How Losing Streaks Affect Your Position Sizing Strategies:

If you are scratching your head about why your losing streak would have any effect on your position sizing strategy, you probably don’t trade a system that has long losing streaks. Even for systems with short losing streaks, however, developing your position sizing strategies should account for this factor. Conversely, understanding how to use winning streak probabilities can help you improve your returns.

– Why Your Drawdowns Are More Important Than Your Returns:

Your returns may make you rich, but your drawdowns can take you out of the game. Stay in the game first and always so you can keep trading!

– The Differences Between Trading Objectives and System Objectives:

Your trading systems need to accomplish a number of specific tasks. Objectives for your trading systems sound different (are different) than your trading objectives. If you don’t understand the differences, you could see deficiencies in your systems, in your position sizing strategies, in your overall trading, or some combination of those areas. Clarify your trading objectives and each trading system’s objectives for clarity in your business.

– Position Sizing Strategies That Reduce The Volatility of Your Equity Curve:

If you are up on the period, you might think you don’t mind some volatility in your equity – or you might know it bothers you. Either way, knowing what kind of position sizing strategies could allow some volatility or dampen it while still enabling equity growth would be highly valuable.

– Minimize Risk to Your Capital But Generate Amazing Returns:

There is one position sizing strategy, in particular, that is easy to understand and relatively easy to implement which minimizes the risk to your initial capital but also turbocharges your returns. It’s surprising that more people aren’t aware of its power and use it more often.

– Allocating Money Among Trading Systems:

If you know that you won’t use the same position sizing strategy on each system, how then do you split your capital among the systems? Is a simple, even split among them the best approach? Not likely.  Learn methods for equity allocation that also help you meet your objectives.

– When To Adjust Or Change Position Sizing Strategies:

Sure, if your objectives change, you would probably adjust your strategies as well. But are there other situations where you would adjust your position sizing strategies? What process would you use to determine if to change them and how to change them? What criteria would you define?

– Given Objectives and SQNs, Determining Position Sizing Strategies:

Students will work through several “hands-on” exercises where they have to develop position sizing strategies and see how well those strategies did in relation to achieving the objectives.

– Applying Different Position Sizing Strategies To One Trading System:

As part of the hands-on exercises, you will get to see how different strategies generate very different ending equity results using the same system

– Applying The Same Position Sizing Strategy To Different Systems:

You will also see how different systems (with different R multiple distributions) using the same strategy generate different ending equity results.

– Monte Carlo Simulation:

The course includes a downloadable Excel-based Monte Carlo simulator that allows you to use your trading system’s distribution of R multiples to simulate the possible range of results for your trading system.

Name of Course: Van Tharp – The Power of Position Sizing Strategies | Release Date: 2023

Sale Page: https://www.vantharp.com/the-power-of-position-sizing-strategies-sqnr-secrets-revealed/

Author Price: $1295 | Our Price: FREE FOR VIP MEMBERS

Delivery Method: Free Download (Mega)