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DT,
You are confusing MM with system entry and exit. MM tells you how
much to buy or sell. It has absolutely nothing to do with timing,
entries, exits, etc. You talk about buying at the close and selling
at the open for a +10% profit. Do you have a plan as to HOW MUCH of
your equity to buy at the close? That's what MM is all about. Your
system has to be profitable first in order for MM to help you control
risk. What if you buy at the close and sell at the open for a -10%?
If the trade lost 10%, how much of your equity did you lose? MM tells
you how much of your equity you can afford to commit to a trade if
you incurred a 10% loss in your trade. You have to plan for whatever
loss you are willing to incur in order to implement MM properly.
AV
--- In amibroker@xxxx, "DIMITRIS TSOKAKIS" <TSOKAKIS@xxxx> wrote:
> Herman,
> I share the question.
> When Buy at Close/Sell at next day open is +10% and Short at
> close/Cover at next day open is another +10% and at the end you are
a
> bit below the first movement, what is the meaning of any MM
> technique ? Is it valid for loosing periods only ? Then, not
trading
> at all would be a better advise.
> DT
> --- In amibroker@xxxx, "Herman van den Bergen" <psytek@xxxx> wrote:
> > I have just one question: Does it really work?
> >
> > Is it worthwhile for me to spend hundreds of hours reading boring
> > books and trying all kinds of code that doesn't work?
> >
> > Can anybody honestly tell me that they increased performance of
> > their trading system by more than 100% or reduced their Drawdowns
> > by 50% or more, using money MM techniques? Or even better: turn a
> > loosing system into a winner?
> >
> > Or is it ALL about reducing risk and never mind that the profits
> > dwindled to 20% of what it was before MM?
> >
> > Any encouragement for me to dig into, or not to dig into, this
> > topic would be appreciated. Examples of how MM benefited you
> > would be appreciated...
> >
> > Many thanks,
> > Herman.
> >
> > PS. Are MM techniques implemented in AB or externally?
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