Risk Management
Exposure
Also called: deployed, cash percent
The percentage of the portfolio deployed in positions versus sitting in cash. My exposure ranges from 0% (fully cash) to around 65% (most aggressive) depending on the environment. I increase exposure when trades are working and providing positive feedback and decrease it when the environment is choppy or hostile.
In Context
“Everything got taken back by Friday, ended with just ET at 15% exposure.”
Death by a Thousand Cuts·Digest
“Closed right on top of the pivot so it could have been a successful retest entry but I sold it to reduce exposure into the weekend because of the crappy action everywhere else.”
Nothing's Changed Yet·Digest
“Energy was the main focus going into the week — midstream names in multi-year breakouts, the priority is exposure”
“I'm ending the week with 3 positions at 36% exposure heading into a long weekend.”
“No stops hit which was good but I had zero interest adding exposure going into a 3-day weekend remembering how convincing the prior Friday bounce was before it completely faded.”