Books on Position sizing, risk reward and gold

Trading Discussion
1

Not sure if this is the correct place to ask this.

Can anyone recommend books, websites or parts of books that have information on position sizing, risk reward ratios and trading gold xauusd, silver xagusd and wti what books or websites have you found useful?

2

Hi tom82,

Are u looking to learn how to position size your trades and apply risk / reward ratios? Or are u just looking to read up on the subject?

You can visit my blog and view my trading results to see how i applied poistion sizing and risk reward in my trading stratergy.

Cheers for now

3

Both. I am interested in reading up on the subjects and learning how to position size and risk reward.

4

Postion sizing is really quite simple. I use postion sizing as part of my trading stratergy.

First off. Postion sizing has to do with choosing the correct lot size to trade with in relation to your stop loss distance in pips.

Some people use fixed stop distances eg 80 pips or 100 pips etc for all their trades therefore their lot size remains the same.

Now if you want to vary your lot size per trade then all you do is divide the amount you want to risk for a trade by the stop loss distance in pips.

Eg. $100 divided by 800 (80 pips) or if you stop loss is 40 pips then $100 divided by 400. Then you hve your correct position size so tht if your stop gets tripped you only loose the $100 you risked and nothing more.

Hope this helps.

5

That is pretty much how I have been doing it for forex pairs and I do the following for XAUUSD, XAGUSD and WTI:

Amount you want to risk in $ / the difference between opening and stop loss price or risk per ounce / contract size
$50 / 17.23 / 100 = 0.02
0.02 lots is 2 oz for XAUUSD

6

For an overview of various position sizing strategies Van Tharp’s ‘Super Trader’ and ‘Trade your way to Financial Freedom’ are hard, if not impossible, to beat

7

Hi mate,
my broker ( Hantec Markets) has a couple of videos on Position Sizing and Risk Reward Ratios…ok, they are not in depth and academic, but I think they are not bad and would pretty much give you a good idea. You have to go to their portal area (myhantecfx) and create a profile first to access them, but that isn’t exactly too complicated.
Hope it helps