Rank and Filter to Adjust Position Size (Part 2)

This article written by�Thomas Stridsman�was originally published in the April 2011 issue of Traders' magazine.

• Mr Thomas Stridsman is a partner of Alfakraft Fonder, where he manages two funds (Alfa Commodity and Alfa Energy). He has been developing strategies for model-based investing since the early 1990s. Prior to joining Alfakraft Fonder, Mr Stridsman managed client money in the FX markets. He also is a freelance analyst and author of the two books Trading Systems That Work (2000) and Trading Systems and Money Management (2003).

The higher the likelihood for a trade to go your way the more contracts you would like to buy. By ranking and filtering all trade signals for a portfolio on any given trading day you can achieve this. For this to work your system needs to keep track of all markets simultaneously. For a broad futures-markets portfolio measuring and ranking the most recent trends strength is one way to do it.

• �Download The Article - Part 2

Source: http://www.fxstreet.com/education/trading-strategies/the-future-of-system-development/2011-07-26.v02.html

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