Comments on: Reader Question: What is Portfolio Heat exactly?

By: The Biggest Risk To The US Financial System | MartinKronicle

The Biggest Risk To The US Financial System | MartinKronicle — Mon, 12 Apr 2010 11:02:04 +0000

[...] not portfolio heat, nor hedge funds and their alleged manipulation of natural gas, nor is it the current, nearly 1:1 [...]

By: Information For Read » Blog Archive » Balanced Investment Strategy … | Investment Finance Wisdom

Tue, 05 Jan 2010 20:21:36 +0000

[...] Reader Question: What is Portfolio Heat exactly? | MartinKronicle [...]

By: martinkronicle

martinkronicle — Tue, 05 Jan 2010 02:59:00 +0000

That is completely personal. If it feels good, and you know the
consequences wrt the potential loss of capital, I'd say do what you're
doing until it doesn't feel good anymore.

I know a lot about how many of the pros trade, but that is unfortunately
off the record.

What's important is that you're comfortable in what you're doing. In
that regard, you have something in common with the pros.

MM

By: michael

michael — Tue, 05 Jan 2010 02:26:01 +0000

Mike…I'm curious to know how much portfolio heat is considered acceptable when it comes to trading your own account. Right now, I'm trading at 35% with 5% per idea on the 7 interbank majors. my system is long term ( roughly 3 to 9 month holding periods, long/short). Is this considered too much risk by professional traders who trade thier own account? I have no problem emotionally when trading hight amounts of risk, my 4atr stop is always in and I sleep well. Thanks for the insight.