Risk Management is all you should be thinking about, especially if you
are a new trader or you are launching your CTA. Risk Management comes
down to position sizing. You'll find out (the hard way) that most of the
time you take a bigger than expected loss, you'll always regret the size
of your position, more than your basis.

/Set-ups/, as they are called, sell magazines and grab blog headlines,
but you should focus 100% of your efforts to being able to define your
risk at any given moment, than how to enter a trade. The minute you
cannot define your risk, you should go to cash. Only bad things can
happen at that point.

Larry Hite said it in his own works in /Broke: The New American Dream/:
“I start with the one thing that I can know. How much I am willing to
lose on a trade.”

One thing you can do to minimize risk would be to cut your position size
by a certain percent as the volatility increases. For example, you might
have a rule that states “cut position by 25% or X # of contracts if the
ATR (or volatility measurement) increases by 20%.” You can test the
percentages and see how they affect your equity curve.

Risk Management is all you should be thinking about, especially if you
are a new trader or you are launching your CTA. Risk Management comes
down to position sizing. You'll find out (the hard way) that most of the
time you take a bigger than expected loss, you'll always regret the size
of your position, more than your basis.

/Set-ups/, as they are called, sell magazines and grab blog headlines,
but you should focus 100% of your efforts to being able to define your
risk at any given moment, than how to enter a trade. The minute you
cannot define your risk, you should go to cash. Only bad things can
happen at that point.

Larry Hite said it in his own works in /Broke: The New American Dream/:
“I start with the one thing that I can know. How much I am willing to
lose on a trade.”

One thing you can do to minimize risk would be to cut your position size
by a certain percent as the volatility increases. For example, you might
have a rule that states “cut position by 25% or X # of contracts if the
ATR (or volatility measurement) increases by 20%.” You can test the
percentages and see how they affect your equity curve.