managing positions without voodoo

a primer on managing positional trades

most important points:

  1. you dictate your risk exposures, not the market
  2. it doesn't matter how you got different exposures to the ones you want, just fix it.


  1. you decide what exposures you want
  2. over time, the market gives you different ones
  3. you don't have to accept that! put the ones you wanted back on
  4. when you don't want the exposures anymore, take them off


"yeah but, i'm realizing a loss..."

who cares?

you already lost that $10k before you covered.

your job is simply to mechanically rebalance back towards the exposures you want.

don't let the market dictate your risk exposures for you.

you can fix them any time by trading.

"trades" are just deltas on your exposures. they are mostly irrelevant by themselves except for the fact that they cost you money each time.