Jump to content

Realistic Expectations on 1) Capital and Position Sizing 2) Fees Ratio

Recommended Posts

Hey everyone, 

I've been in the community for almost 5 months now and trading live for about two months. I love the BBT community, everything I have seen and read have been super helpful.

I have a couple of questions regarding 1) Capital and Position Sizing 2) Fees Ratio

First one on Capital and Position Sizing.

Let say if I have $60000 in my account, and I am willing risk a max loss of 2%, that's $1200. How realistic is it in practice to actually deploy the entire $60k in one stock on a morning of a trading day. Example, say AMD is trading at $30 a share, how realistic is it to throw $60k on it to long/short 2000 shares. The reason why I am asking is because I trading a tiny account that's no where near $60000. I am getting in and out of one stock with relatively quick execution with a few thousand bucks of capital. What about a larger size account like $60000. Should I expect the same execution time in DAS or longer? Basically, i want to know what I don't know. haha.

So for those of you who've been trading successfully with a larger size account I'd love to hear from you.

Second question is on P/L-to-fees ratio

I am current have a ratio of 33%, meaning every $100 I trade, $33 goes to fees. What is the average ratio to expect that's consistent and healthy in the long run?

Appreciate your feedback

Dave 2Y

Share this post

Link to post
Share on other sites
Posted (edited)

Good question. Practicing in sim for a full size unrestricted account of 25K (100K buying power). In sim the executions of 500-1200 shares of the typical BearBull watchlist stocks are "typically" immediate. Occasionally I miss a fill but not that often and rarely get a partial. 

So I'm also curious how realistic the sim executions of larger sizes translates to a real account. You can watch other people but who knows if they really live or actually just in sim. 


Edited by RyanP

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.