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Position Sizing: The Key to Consistent Trading Success


Position sizing, a crucial aspect of trading strategy, is often overlooked by novice and experienced traders alike. It is the process of determining the number of shares or contracts to trade, taking into account your account size, risk tolerance, and trade setup. In this article, we delve into the importance of position sizing and explore insights from Dr. Glen Brown, a renowned expert in trading psychology and risk management.

The Importance of Position Sizing

  1. Risk management: “Position sizing is the cornerstone of successful risk management,” says Dr. Glen Brown. By controlling the size of your trades, you can manage potential losses and prevent devastating drawdowns in your trading account. By employing proper position sizing techniques, you can preserve your trading capital and stay in the game longer.
  2. Consistency: Dr. Brown emphasizes the importance of consistency in trading, stating, “Consistent position sizing is essential for consistent results.” This is particularly true for traders who follow a systematic approach. By maintaining a consistent position size, you can better evaluate your trading system’s performance and make necessary adjustments.
  3. Emotional stability: Trading can be an emotional rollercoaster, and proper position sizing helps to maintain emotional equilibrium. “When traders use appropriate position sizing, they’re less likely to experience emotional extremes,” explains Dr. Brown. By keeping your trade sizes in check, you can avoid the emotional pitfalls of overconfidence or fear, which can negatively impact your decision-making.
  4. Longevity: Position sizing contributes to trading longevity by reducing the likelihood of significant losses that can lead to account depletion. Dr. Brown cautions, “Ignoring position sizing increases the chances of encountering the dreaded ‘death spiral,’ where one large loss leads to a series of even larger losses, eventually wiping out a trading account.”

Position Sizing Techniques

  1. Fixed dollar amount: Dr. Brown suggests that one way to approach position sizing is to set a fixed dollar amount per trade. This approach is simple and easy to implement, but may not be the most suitable for all traders, as it doesn’t consider the specific risks associated with each trade.
  2. Percent of account: Another method is to risk a fixed percentage of your trading account on each trade. Dr. Brown states, “This method ensures that as your account grows, so does your position size, while a decrease in your account size will lead to smaller position sizes, keeping risk in check.”
  3. Volatility-based sizing: This technique involves adjusting position size based on the volatility of the asset being traded. Dr. Brown notes, “By factoring in volatility, traders can better account for the inherent risks associated with each trade.”


Position sizing is a critical aspect of trading success that should not be underestimated. As Dr. Glen Brown emphasizes, it helps traders manage risk, achieve consistency, maintain emotional stability, and promote longevity in the markets. By employing a suitable position sizing technique, you can better safeguard your trading capital and enhance your chances of long-term success.

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A better way to set Stop Losses by Dr. Glen Brown


Your Stop Loss should be based on the Volatility Exposure(VE) of the financial instrument .

Volatility is the  rate at which the price of a financial instrument  increases or decreases for a given set of returns.

How do we measure Volatility of a financial instrument?

Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time. This shows the range to which the price of a financial instrument may increase or decrease. Hence, Volatility measures the risk of a financial instrument.

Within the Global  Algorithmic Trading Software(GATS), We use Volatility to  indicate the pricing behavior of the financial instrument which help us to estimate the fluctuations that may happen within different timeframes.

We use the PATS Average True Range(ATR) indicator to set the stop loss and profit target for the various subsystems and strategies.

At Global Financial Engineering, we believe that your stop loss should be based on the number of Volatility Exposure Periods (VEPs). 

For example: Using Average True Range(ATR) with period 200 with a conservative risk % model:

**27VEPs  is assigned to the based system which runs on the 1 minute chart where the default risk is set at 0.01% of free equity

**24VEPs is assigned to system #1 which runs on the 5 minutes chart, where the default risk is set at 0.02% of free equity

**21VEPs is assigned to system #2 which runs on the 15 minutes chart, where the default risk is set at 0.0.03% of free equity

**18VEPs is assigned to system #3 which runs on the 30 minutes chart, where the default risk is set at 0.04% of free equity

**15VEPs is assigned to system #4 which runs on the 60 minutes chart, where the default risk is set at 0.05% of free equity

**12VEPs is assigned to system #5 which runs on the 240 minutes chart, where the default risk is set at 0.06% of free equity

**9VEPs is assigned to system #6 which runs on the Daily chart, where the default risk is set at 0.07% of free equity

**6VEPs is assigned to system #7 which runs on the Weekly chart, where the default risk is set at 0.08% of free equity

**3VEPs is assigned to system #8 which runs on the Monthly chart, where the default risk is set at 0.09% of free equity

The Global Algorithmic Trading Software(GATS) will use the above inputs to calculate the position size of each financial instrument.




There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities , currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute,Inc. or Global Financial Engineering,Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Global Professional Proprietary Trading Course

Course Title: Global Professional Proprietary Trading Course

Course Instructor: Dr. Glen Brown, President & CEO of Global Financial Engineering and Global Accountancy Institute.

Course Description:

Dive deep into the world of proprietary trading with the Global Professional Proprietary Trading Course, designed and led by the esteemed Dr. Glen Brown, President & CEO of Global Financial Engineering and Global Accountancy Institute.

Course Overview:

This course is a meticulously crafted journey into the intricate realm of global financial markets. It offers a blend of theoretical insights and practical applications, allowing participants to navigate market challenges with confidence and precision.

What You’ll Learn:

  1. Foundational Knowledge: Begin with a thorough understanding of global financial markets, their key players, and a variety of trading instruments, from stocks to cryptocurrencies.

  2. Advanced Strategies: Delve into proprietary tools like the Global Algorithmic Trading Software (GATS), exploring strategies ranging from ‘Global Momentum Scalper’ to the ‘Global Daily Trend Rider’.

  3. Technical Mastery: Grasp advanced technical analysis methods, including Dr. Brown’s unique methodologies such as the “Principle of Forex Multidimensionality” and the “Market Expected Moves Hypothesis.”

  4. Holistic Portfolio Management: Learn the art and science of portfolio construction, exploring diverse strategies like the “Global Atlantic Allies” and the “Risk Resonance” portfolios.

  5. Hands-on Experience: Through Electa LMS’s virtual classroom, engage in real-time market analysis, experience live trading sessions, and participate in interactive discussions with peers and experts.

  6. Algorithmic and Systematic Trading: Deepen your expertise with a focus on systematic trading, high-frequency trading strategies, and advanced techniques like the Dynamic Adaptive ATR Trailing Stop (DAATS) System.

  7. Risk Management: Understand the crucial aspects of risk, from developing robust risk management strategies to implementing adaptive trailing stops.

Key Features:

  • Blended Learning: The course amalgamates on-demand lectures with live online sessions, ensuring that learners benefit from both structured content and real-time market insights.

  • Expert Guidance: Learn directly from Dr. Glen Brown, leveraging his vast experience and unique insights into the world of trading.

  • Interactive Platforms: Make the most of the Electa LMS, with features like live virtual classrooms, recorded sessions for flexible learning, homework assignments, quizzes, resource libraries, and engaging discussion forums.

Who Should Attend?

Whether you’re a novice trader aiming to build robust trading strategies, a professional looking to broaden your horizons, or an institution seeking deep insights into global markets, this course promises a transformative learning experience.

Certification for the Global Professional Proprietary Trading Course

Upon successful completion of the Global Professional Proprietary Trading Course, participants will be awarded a prestigious certificate, a testament to their rigorous training and newfound expertise in the domain of proprietary trading.

Certificate Features:

  1. Professionally Designed: Reflecting the premium quality of our course, each certificate is meticulously designed, ensuring it stands out as a mark of excellence.

  2. Security Enhanced: To protect the integrity of our certification, each certificate comes with advanced security features. A unique QR code or verification link is embedded, allowing anyone to confirm the certificate’s authenticity swiftly.

  3. Recognized Expertise: The certificate carries the signatures of leading figures from the Global Financial Engineering and Global Accountancy Institute, enhancing its weightage and recognition.

Legal & Ethical Adherence:

  • Distinct Identity: While our course provides in-depth knowledge and practical skills, the certificate is an acknowledgment from Global Financial Engineering and Global Accountancy Institute. It doesn’t represent formal accreditation from an external body.

  • Clear Disclaimer: The certificate clearly mentions its nature, ensuring that it’s recognized as a mark of course completion and mastery over the content taught, rather than any formal educational degree.

Why Seek Certification?:

  • Professional Recognition: The certificate stands as a testament to your dedication, hard work, and expertise in proprietary trading.

  • Enhanced Credibility: Possessing a certificate from a reputable organization can boost your professional credibility, making you stand out in the competitive world of trading.

  • Career Advancement: Showcase your certificate on professional platforms like LinkedIn or in job applications, signaling to potential employers or clients your commitment to continuous learning and expertise in the field.

Enroll in the Global Professional Proprietary Trading Course today, immerse yourself in a transformative learning experience, and earn a certificate that opens doors to countless opportunities in the world of trading. Your journey towards mastery and recognition starts here!

Join us on this unparalleled expedition and master the art and science of trading with the Global Professional Proprietary Trading Course. Empower yourself with knowledge, strategy, and the expertise to conquer the dynamic world of global proprietary trading.


Disclaimer: The course content is designed for educational and informational purposes. Trading and investing carry risks, and past performance isn’t indicative of future results. All trading decisions should be made based on personal research and judgment. It’s advised to seek professional advice before making any trading or investment decisions.