How to Allocate Capital to Scale Your Trading System Success

How do you know when you've got enough to start trading that system? How do you know how much to allocate to the next one and the next one? How do you figure that out? The way you come up with that is just your current capital plus your monthly savings over how many months that you're designing your portfolio out for. And then that gives you the number that you're working towards. Use that number, design the portfolio for that number, and then work towards it in a step by step fashion. Now, what if you're not saving? What if you're just building confidence in this whole systematic trading thing? Let's say you've got half a million bucks and you're like, I want to be a trader, but I'm not ready to trade my half million dollars yet. I'm just working towards that. But maybe in three years time or two years time or one year's time, I'm going to be confident enough to trade all that money. Same approach. What is the amount of money you're going to trade and when are you aiming to be trading all of that money? Take that amount. Work on the capital allocation to allocate that amount. Decide which system you're going to trade first. You know what percentage of the 500 you're going to trade because you've just done the capital allocation. Build confidence in that first system. Let's say it's 10% just to pick an easy number. 500,000. 10%. $50,000. Once you've built confidence and you go live with $50,000, then you get to work building confidence on the second system, whatever that is. Once you've got enough confidence on it, then you go to your original capital allocation for the 500. What percentage did you decide on for the second system? Then go live with that amount. So you're building your exposure system by system, by system until you get to your total amount of capital that you're aiming to trade. Sat.