Author Topic: Calculating new position size when increasing the No. of Open Positions.  (Read 762 times)

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Offline Dave McCulloch

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Dear Members,

To assist members wanting to increase the number of positions being held in an Equal Weighted Portfolio, we have produced a paper that outlines two approaches that can be used.

The paper also includes the arithmetic on how to calculate the new position sizes so that the relative profit (loss) is maintained on the current open trades, and allows for the redistribution of capital on a pro-rata basis to the new positions that will be added and opened in the expanded Portfolio.

The paper is attached for your convenience, and will also be uploaded to the Education Centre shortly.