How Much to Trade – Fixed Fractional Position Sizing

Mechanical strategies for trading futures usually include fixed fractional position sizing to limit initial risk from any single trade.

Volatility Based Stops

Futures traders generally employ exit points in the form of volatility based stops for each position (established at initiation) determining when to cut a loss short and operating in conjunction with position sizing rules.

A 1901 cartoon depicting financier J. P. Morgan as a bull with eager investors

Trend Following Systems

A quantitative trend following system must define: when to enter a position; how much to buy; when to exit a position.

NASA Apollo 8 Earthrise By NASA / Bill Anders

Global Macro

The Global Macro hedge fund strategy can be defined as dynamic global asset allocation. Global Macro hedge fund managers have the ability to take positions in any instrument in any market throughout the world.