This content was created by Adrian Reid. This content was uploaded by Adrian Reid. This is a YouTube video titled "How Can I Manage If I Get Too Many Buying Signal To Buy With A Limited Capital" featuring Adrian Reid discussing strategies for managing multiple buy signals with limited capital, using a backtesting approach to maintain portfolio exposure.
It's very possible that you could get way more buy signals in any one day than you have the capital to take. Very possible. And in fact, with Freight Train, it will happen all the time.
But what your job is to do is to establish the portfolio that the back test, the compounding back test would establish. So if you have $15,000 and your system is position sizing, just to simplify things based on 5% of equity.
So your positions will be $750 in this example. So let's say you had $10,000 fully invested. Now you've got 15,000 you're putting into your current equity. You run the backtest and you get 20 trades that are supposed to be open tomorrow for $750 each. You clearly don't have 20 times $750 left. So what you do is you start at the top of the list and you take the first one and the second one and the third one until you run out of capital for that system. So your job is to maintain the maximum exposure to the $15,000 that you committed to.
Sam.
