Disliked{quote} The old risk to return chestnut. Higher returns with higher risk where risk is expressed as potential value variation per unit of time (aka as a measure of the volatility expressed in your total equity allocated to a system). Risk is not the distance between our entry and our stop. This is simply potential maximum loss exposure. You could have a wide stop and wait for 2 years to reach this level....or you could wait for 2 minutes. Clearly risk is different in each of these cases. By viewing risk this way you can understand why an allocation...Ignored
I currently trade a small portfolio of systems over a small mix of instruments and timeframes (H1 - 1 instrument,H4 - 4 instruments,Daily - 4 instruments) can this be enough? assuming I'm ok with fairly volatile returns. I understand the advantages of much broader diversification but at the same time I like the idea of keeping things compact and simple. Be interested in your opinion
tradewith60
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