# of open positions

It would be nice to know the # of open positions in a system. If the system is making substantial profits and a relatively large number of positions are open, then I would know that the system is making profit across the board and not just making profit suddenly by holding on to a solitary loser which became a winner lately. Also, this number aids in money management…

You can calculate it historically yourself. I posted the formula on my blog:

http://scitra.blogspot.com/2007/06/calculating-number-of-open-positions.html



(I think I got it correct, but if you spot any systems for which it doesn’t work, please let me know)

Great, thanks.

Actually, thinking about it again, I want more. I want to know the # of open positions currently held by a system, not historical average…

Why? Isn’t the historical average more important for making a decision to subscribe to a system or not?

It is equally important to know what is the current situation with the system (when I am about to subscribe…). I don’t want to subscribe at the wrong time…Also, once subscribed, it is especially useful in MM if I know what the # of open positions is without having to count it each and every time…

In particular, I want to limit the number of positions, say for stocks to 16, so that it doesn’t behave like an index or an ETF (I want to beat the index or ETF). The only way I can do it is to limit the number of positions to less than the index/ETF and correspondingly increase the position size coupled with intelligent exits during downturns…