Stop on YHOO @ .48

Using my 35% stop/loss rule on anything .50 and over.

.50 and under for options is 50% stop/loss max. I can do lower too.

This is just a small part of my mechanical TA system. The percentages are in my favor.

Example. If I lose 33% 3 times. All I need is 100% to make it back....which isn't something I'm worried about at all. I could do 20% but with the VIX at these levels it's too tight IMO.

Atilla had a great sizing strategy.....

ATILLA:
"position size=K*(total capital)/(vix*rr)
rr=risk reward ratio
vix=market volatility if you trade ES
K=a constant you chose based on your own postfolio risk

you have 1M
vix is at 60
you have a setup 1:2 ratio meaning you short at 900, stop 910, target 880
K=1

position size=34K for that particular trade

if your risk bracket higher, make that K=2 or 3"


The guy's a genius