|
PureBytes Links
Trading Reference Links
|
------=_NextPart_001_0018_01C2349E.8C3732A0
Content-Type: text/html;
charset="iso-8859-7"
Content-Transfer-Encoding: quoted-printable
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META content="text/html; charset=iso-8859-7" http-equiv=Content-Type>
<META content="MSHTML 5.00.3013.2600" name=GENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=#ffffff>
<DIV><FONT size=2>Anthony,</FONT></DIV>
<DIV><FONT size=2>Here is a basic principle I always apply.</FONT></DIV>
<DIV><FONT size=2>I plot the equity curve of the system I trade and its 40-day
EMA.</FONT></DIV>
<DIV><FONT size=2>When I see a descending cross, I stop the trade with the
proper order.</FONT></DIV>
<DIV><FONT size=2>I reinvest when I see an ascending cross [hopefully
lower].</FONT></DIV>
<DIV><FONT size=2>In the attached example, at A I have incash $72606 [initial
equity $10000]</FONT></DIV>
<DIV><FONT size=2>At B I should begin with $67813 to reach the final $105395, ie
a +55.4%</FONT></DIV>
<DIV><FONT size=2>The actual final equity will be $112844=1.554*72606
minus the two commissions.</FONT></DIV>
<DIV><FONT size=2>I use the 40-day average for systems with slow systems with ~5
trades per year.</FONT></DIV>
<DIV><FONT size=2>How does it look like?</FONT></DIV>
<DIV><FONT size=2>Dimitris Tsokakis</FONT></DIV>
<DIV><FONT size=2>PS1. Since May 1, 2000 it occurred only twice and for a
few days. But I know it afterwards,</FONT></DIV>
<DIV><FONT size=2>as you understand.</FONT></DIV>
<DIV><FONT size=2>See ORCL respective Equity to get a more important
message.</FONT></DIV>
<DIV><FONT size=2>Cash is always the king, when something goes wrong withthe
system.</FONT> </DIV>
<DIV><FONT size=2>PS2. I have never thought to code this technique. Should
I ?</FONT></DIV></BODY></HTML>
------=_NextPart_001_0018_01C2349E.8C3732A0--
Attachment:
gif00432.gif
Description: GIF image
Attachment:
Attachment:
Description: "Description: GIF image"
Attachment:
Description: "gif00433.gif"
|