Position Sizing Indicators

Position sizing is a very important aspect of quantitative trading, directly related to capital management and risk control. This directory contains commonly used position sizing indicators.

Indicator List

Fixed Fractional Position Sizing

Fixed fractional position sizing is a method of allocating positions based on a fixed proportion of the total account capital. It controls the position size of each trade by setting a fixed risk proportion.

Volatility Scaling

Volatility scaling is a management method that dynamically adjusts position size according to market volatility. It balances risk and return by making position size inversely proportional to market volatility.

Kelly Criterion

The Kelly criterion is a position sizing method based on probability and odds, which calculates the optimal position proportion to maximize long-term returns.

Usage Recommendations

1. Choose an appropriate position sizing method based on account size
2. Dynamically adjust position size in combination with market conditions
3. Pay attention to risk control and avoid excessive leverage
4. Regularly evaluate and adjust position sizing strategies