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Al,
thank you for the interesting reply.
My reply to Herman was influenced by the recent N100 events.
I do not confuse MM with system entry and exit.
In general I apply the following plan:
The "basic" movements need the 60% of the capital.
[two or three selections with max 6 months perspective]
Another 20% will be available for sharp "take the money and run"
movements.
The rest 20% will "borrow" some money to part I and II, when they do
wrong.
Any experimental new technique needs money to be tested.
Every 6 months the 50% of the pure profits are capitalised and half
of them will pay the experiments. The rest is permanently out of the
system.
Experimental methods need 5 or more successful movements to become
repetitive tools and more than 10 profitable tests to become "basic".
I never thought to optimize this plan and thatīs all.
Dimitris Tsokakis
--- In amibroker@xxxx, "Al Venosa" <avcinci@xxxx> wrote:
> 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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