Just a brief note today.
How do you spend your time during the system development process?
It should be something like this:
- 30% working on your objectives
- 30% working on your position-sizing
- 30% working on your exit rules (So you can trade what’s in-front of you)
- 10% on your entries
To reinforce the point I asked a hedge fund manager what his top tip for future money managers was today. His answer:
“I’d say gain an understanding of the metrics that they need to achieve, ideally before embarking on creating the track record – then devise a risk management/trading strategy that achieves those metrics.”
Next:
How do you spend your time during the trading process?
It should be something like this:
- 30% on psychology (maintaining the right state)
- 30% on managing existing positions/ risk management
- 20% on your entries
- 20% on recording/ journaling/ debriefing
How does your time spent compare to these?
(By the way this applies to all traders not, just money managers)
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