Day Trading, Swing Trading and Options Trading Systems

Allocation ideas for Stock and Options Trading

Traders can increase profitability and consistency by utilizing several trading strategies in their portfolio. Here are some tips for allocating your Crestrade Trading Systems:

  • Start small and move up: It is very important to get a feel for the ups and downs of our trading systems. Always start with lower allocation and move up in the systems you feel most comfortable with.
  • Keep a good mix of styles: A good mix of day trading, swing trading and options trading systems will help you smooth out the profitability of your account and allow you to be exposed to multiple levels of risk and profit opportunities..
  • Pay Attention to "max simultaneous open positions": On every trading system page you can see what the highest number of open positions we will have in that system is. This number is on the chart at the top of the page, under "trade frequency". If you want 20% of your overall portfolio dedicated to a trading system that has a max of 4 simultaneous open positions, then you would put an allocation of 5% per trade.
  • Think in terms of Risk/Reward: Every trading system has varying levels of risk involved. For example, a trade in the strangle/straddle system might lose or profit 50-100% of allocated funds, while a trade in the classic day trading system will rarely see moves greater than 3% on a single trade. For our options trading systems, we advise that no more than 5% of your overall buying power be placed in any one system.
  • Be diverse and sleep well: Trading should be profitable and fun. If you are worried or fearful about your trades, you are more likely to make costly mistakes. Allocate more to the systems that make you the most comfortable and decrease exposure to the systems that make you nervous. Only you know your risk tolerance and goals!

Please keep in mind that your membership will include access and alerts for ANY and ALL Options Trading, Day Trading and Swing Trading systems, so there is no additional cost to diversifying your trading portfolio!


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