Adrian ReidFounder of Enlightened Stock Trading

Portfolio Management Tips: Choosing Between Correlated Systems

21 Aug 2025 · 1 min

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1:12

Adrian Reid explains how to choose between correlated trading systems when they have the same impact on a portfolio: small accounts should pick one system (based on preferred activity level — weekly vs daily), while large accounts may run both to spread capital, reduce position size, and limit slippage. The guidance focuses on portfolio impact, account size, activity preference, and slippage as the deciding factors.

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Let's say the systems have an equal impact on your portfolio and you don't have enough capital to trade both Even if you did have enough capital to trade both the systems are basically correlated so it doesn't matter which one you trade if the impact on the portfolio is the same. Probably doesn't right? Unless there's another objective that will help you decide which one is more appropriate for you you may want to do less activity as a general rule maybe one of them is weekly one of them is daily choose the weekly system you may want more activity as a general rule choose the daily system Two systems have basically the same impact on the portfolio. The only real reason to trade both is to spread your capital to reduce your position size to reduce slippage so that's a big account problem not a small account problem. Small accounts you just choose which one big account you probably trade both and just spread your money around a bit more.
Sam.