Allocating capital for higher returns with Michael Melissinos

MikeMellissinosPhoto | Better System Trader

Whether you’re a retail trader with a small account or a fund manager with millions or billions under management, something that we all need to consider carefully as traders is how or where we’re going to use the money in our trading accounts.

‘Capital allocation’ sounds boring but it can have such a huge impact on our trading results. Unfortunately, it can sometimes be overlooked for other aspects of trading like entries and exits, leaving traders with an inefficient use of their capital and can result in lower returns and poor performance.

Can we use our trading capital more efficiently to achieve higher returns? And if we can, then how?

Todays guest, Michael Melissinos, started out as a junior analyst at Bear Stearns and is now running his own systematic trend-following fund Melissinos Trading.

Mike is a competitive guy, always looking for ways to improve his trading performance and in today’s episode he’s going to share with us some practical ideas and research, including:

The 3 most important things that influence trading performance
Why what you trade is more important than entries and exits
Ideas to improve trading results through dynamic capital allocation
How to use indicator scores to measure trend strength
And much more.

Diversification on entries and exits doesn’t improve performance as much as portfolio allocation

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Resources mentioned in this episode

Michael can be contacted through his websites michaelmelissinos.com or melissinostrading.com
Don’t forget to follow Mike on twitter @mmelissinos
Books mentioned in the show: