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That's a little harsh, TJ.
I think everyone is very excited about the new MM plans and are waiting
with nervous anticipation for what we all hope will be the finest MM
feature in any TA product. Hence all the questions. Sort of like when
you were a child and got excited about a new toy that your parents
hinted at but didn't tell you all of the details.. It made you more
excited and more curious.
It's a very exciting time in AB land!
dingo
-----Original Message-----
From: Tomasz Janeczko [mailto:amibroker@x...]
Sent: Thursday, October 31, 2002 2:19 AM
To: amibroker@xxxxxxxxxxxxxxx
Subject: Re: [amibroker] Dynamic Money Management
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" <avcinci@xxxx>
To: <amibroker@xxxxxxxxxxxxxxx>
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.
>
>
>
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