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Sorry, I didn't know that was the same question.
Al Venosa
>From: "Tomasz Janeczko"
>Reply-To: amibroker@xxxxxxxxxxxxxxx
>To:
>Subject: Re: [amibroker] Dynamic Money Management
>Date: Thu, 31 Oct 2002 08:18:51 +0100
>
>Al,
>
>Excuse me but how many times will ask the same question?
>I know how TR program works. And I already wrote that in the future
>AB will support TR-style operation. That's all I have to say.
>
>Best regards,
>Tomasz Janeczko
>amibroker.com
>----- Original Message -----
>From: "Al Venosa"
>To:
>Sent: Wednesday, October 30, 2002 9:28 PM
>Subject: [amibroker] Dynamic Money Management
>
>
> > Tomasz:
> >
> > Yesterday, I posted a message on Van Tharp's forum about your plans
> > to incorporate innovative money management and pyramiding techniques
> > in a future version of AB. Below is a response from a user of Trading
> > Recipes, who claims that TR is the only software that handles MM
> > corrrectly. Here is what he said:
> >
> > "It DOES position sizing. the RIGHT way. I own the program and it is
> > GREAT. It took me about 5 minutes to get over the fact that it is
> > still a DOS based app. But it's really the ONLY tool that does it the
> > correct way.
> >
> > I talked to AmiBroker about 6 months ago, and they told me the same
> > thing. Plus once they do release the program with position sizing, it
> > still has to be proven that they have done it right.
> >
> > There are three other companies that I know have that have tried to
> > do position sizing. Two of them got it wrong. www.rinasystems.com and
> > www.bhld.com
> >
> > The third is the athena program that is mentioned in Van's book. I
> > haven't ever had the privilege of playing with that program, but I
> > believe I read somewhere that it used output files from trade
> > station. So, it would also fall into the category of a program that
> > isn't truely implementing position sizing at the portfolio level like
> > Trading Recipes does."
> >
> > To explain what he meant by doing it 'the right way', here is what he
> > said:
> >
> > "TRADING RECIPES' approach lets you combine trading signals and trade
> > sizing strategies into simulations which exactly mimic the way you
> > would trade in real time. A core feature, which sets it apart from
> > all other "money management" (or backtesting) software, is its
> > ability to perform dynamic money management (DMM) and risk control at
> > the portfolio level. With DMM, position sizes are determined with
> > full knowledge of what's going on at the portfolio level at the
> > moment the sizing decision is made. Just like you do in reality.
> > Other software packages simply sum individual pre-calculated equity
> > curves. This way, position sizes are calculated with no knowledge of
> > what the current portfolio conditions are at the crucial moment when
> > a position sizing decision is to be made. This is not how you would
> > make decisions in reality and therefore such simulations offer no
> > useful information to the trader. DMM avoids this pitfall."
> >
> > TJ, will your approach be able to do DMM as described above?
> > Personally, I have no desire to use any program based on DOS. I think
> > the position sizing algorithm now included in AB does almost what
> > this guy describes except for scaling in and out of trades and basing
> > one's decisions on the value of the entire portfolio of multiple
> > stocks rather than a portfolio of one stock.
> >
> > Al V.
> >
> >
> >
> > Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx
> > (Web page: http://groups.yahoo.com/group/amiquote/messages/)
> >
> > Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html
> >
> > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
> >
> >
> >
>
>
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