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onlyjava

Position size, hot keys, number of orders - please advise

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Posted (edited)

I heard from a trader that 

"My position size is set at $35,000 for my hot keys. So if I want to increase a position size over $35,000, I will hit a hotkey a couple of times  to enter  a trade"

Example scenario: when I could have one order for 3000 shares, I will end up with 3 orders for 1000 shares each.

Advantages:

With a fixed position size and related hotkeys I can master the mechanical aspect of trading. (instead of getting confused with more hotkeys etc)

As I get more confidence I gradually increase my capital and position size without changing the hotkeys I have mastered. Let us say, I start with $20000 and after 6 months I double the capital to $40000. I don't change the hotkeys that I have for $20000, I just hit the appropriate BUY|SELL hotkey twice if I want to take advantage of the extra $20000.

Disadvantages:

More transaction fees?

Timing lag?

 

Please advise me - thanks.

Edited by onlyjava

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you adapt your hotkey to be in line with your account size and risk comfort

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On 3/20/2020 at 7:21 AM, onlyjava said:

I heard from a trader that 

"My position size is set at $35,000 for my hot keys. So if I want to increase a position size over $35,000, I will hit a hotkey a couple of times  to enter  a trade"

Example scenario: when I could have one order for 3000 shares, I will end up with 3 orders for 1000 shares each.

Advantages:

With a fixed position size and related hotkeys you can master the mechanical aspect of trading. (instead of getting confused with more hotkeys etc)

Disadvantages:

More transaction fees?

Depends on the fee structure for your broker, but if your broker does things similar to CMEG, then it doesn't matter. The fees and commissions you pay are driven by the total number of shares, not trades. See my post here.

Timing lag?

Please advise me - thanks.

 

 

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