- CropsProfit can help you save valuable time by combining smaller transactions to give you larger transactions with less paperwork.
- To do this you can decide on a season’s preferred transaction size.
- The smallest preferred transaction size you can use is the quantity of one contract for a season’s crop type.
- The largest preferred transaction size you can use is typically up to around 6% of the total expected harvest for a season. Research has shown that one should not risk more than 6% of a portfolio as the winning traders in the study did on average. [1]
- Keep in mind that when you are increasing the preferred transaction size it may sometimes seem that CropsProfit’s algorithms are missing opportunities to do transactions. The reason for this is that the small transactions are combined in the background until there is enough to do your preferred transaction size.
- Remember you can change the preferred transaction size at any time by updating a season’s crop marketing plan.
- Ginyard, J. (2001). Position-sizing Effects on Trader Performance: An experimental analysis Uppsala University, Department of Psychology (Master’s thesis), Retrieved from https://www.turtletrader.com/position_sizing.pdf
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