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.
On the Chart
In Context
“This is the exact reason I force myself to put on exposure on a follow-through day even when I don't believe the rally attempt.”
Wow·Digest
“Came in with three positions at 40% exposure.”
Wow·Digest
“Forcing small exposure on a follow-through day Even on a follow-through day I don't trust, I force myself to put on a small position.”
Wow·Digest
“How I add and remove exposure is what I call the [feedback loop](/concepts/feedback-loop).”
Level to Manage Risk > Setup·Digest
“This felt like a FTD so the goal was to add some exposure, not chase.”
Level to Manage Risk > Setup·Digest