039: Michael Cook discusses position sizing, stops and discretion in algo trading. [AUDIO ONLY]

Position sizing in algorithmic trading can matter more than entries - World Cup Champion Michael Cook explains how. ► Full article: https://bettersystemtrader.com/039-mi... In this episode: • Why the market should set your stop levels, not your risk parameters • How position sizing algorithms affect returns more than entry signals • The case for fully automated systems - monitoring 60-70 markets without extra effort • Where discretion still fits in a systematic approach (and where it doesn't) 0:00 Introduction 1:30 Michael's background - from institutional trading to full automation 7:20 Why time zone constraints forced genuine automation 12:30 The scalability advantage - trading 60+ markets algorithmically 17:30 World Cup Championships - why Michael entered and what they test 29:30 How the market should set your stop levels 35:00 Selecting a position sizing algorithm 41:30 Evaluating system quality - what to look for in a backtest 46:00 The role of discretion in systematic trading Related episodes: • Ralph Vince on position sizing, optimal f and risk:    • 011: Ralph Vince talks position sizing, op...   • Kevin Davey on system development and backtesting:    • 005 Kevin Davey discusses system developme...   • Tim Rea on trading 100+ algo strategies:    • 021: Tim Rea, trading champion, discusses ...   Position sizing in algorithmic trading is where most of the untapped performance lives, according to three-time World Cup Champion Michael Cook. After years on institutional desks at Bank of America and various hedge funds, Cook moved to fully automated futures trading across 60+ markets. His core principle: let market structure determine your stop level first, then size the position so the risk fits your parameters - not the reverse. This episode covers the full framework, from stop placement logic to position sizing algorithms to the narrow role discretion can legitimately play. --- ► Better System Trader: https://bettersystemtrader.com ► Follow on X:   / bettersystrader   #PositionSizing #SystemTrading #AlgoTrading Disclaimer: Trading in the financial markets involves a substantial risk of loss. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. ---