Diversification and Position Sizing for Spot Paper Trading
Prepared with AI assistance · Reviewed by Anuga Weerasinghe · 2026-10-09
Learn how to build balanced spot portfolios, manage concentration risk, calculate percentage weights, and systematically rebalance assets using TradeHQ's paper trading simulator.
Learning outcomes
- Calculate exact position sizes in dollars and units based on target percentage weights.
- Identify and mitigate concentration risk within a spot paper trading portfolio.
- Execute systematic rebalancing using TradeHQ's virtual cash and market orders.
- Formulate a target asset allocation plan suited for a $100,000 virtual balance.
Before you start
Basic understanding of spot market buying and selling.
How the lessons build
This course prepares you to apply risk management principles to advanced trading and simulation scenarios.
Scope
Traders looking for options, futures, leverage, short selling, or real-money financial advice.
Lessons
- Foundations of Asset Allocation and Position Sizing
Learn how to establish target portfolio weights and calculate precise spot trade sizes using virtual cash.
- Managing Concentration Risk and Portfolio Drift
Understand how concentration risk builds up and how price changes cause your portfolio to drift from its targets.
- Executing Rebalancing with Virtual Cash
Master the mechanics of buying and selling spot assets to realign your portfolio with target allocations.