Think of your trading every bit a business.
Think of the strategies you lot trade: the patterns, setups, themes, property classes, types of trades, and/or relationships.
Break downwards your profit/loss yesteryear strategy. How much convey you lot made on each strategy? What is the variability of returns inside each strategy? How are the returns of each strategy correlated amongst 1 another? Under which weather condition attain your strategies perform best too worst?
Now revamp your coin administration across strategies. Allocate less involve chances to the strategies amongst the virtually volatile returns; virtually involve chances to the strategies amongst the best risk-adjusted returns. Allocate less full working capital missive of the alphabet to strategies that are highly correlated amongst other strategies; to a greater extent than working capital missive of the alphabet to strategies that attain positive returns amongst depression correlation.
You are starting to brand the transition from beingness a trader to beingness a portfolio manager. As a portfolio manager, your trading delineate concern is a diversified one, too you lot induce attain the allotment of resources across distinct chance sets.
There is however much to last done to last a corking leader of your trading business. There is inquiry too the evolution of novel opportunities. There is besides function to last done to amend efficiencies inside each strategy: how you lot limited the views of your strategy; how you lot move inward too larn out positions; too how you lot scale into or out of positions.
Then, of course, at that spot is self-management: managing your life then that you’re inward the best possible shape to run your delineate concern effectively.
Your destination is to run the variety of trading delineate concern that you lot would invest inward if soul was raising working capital missive of the alphabet too doing precisely what you’re doing.
Further Reading: Leading Your Trading Business