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Steve,
Do they mean a lot ?
I guess the simple answer is ... yes to me they do.
With regards to having single large gains in systems skewing the results, in the fully compounding model this is easily seen in the graph and statistics if it occurs. Likewise large DD's are also seen visually and statistically, where as in the other fixed dollar position size models both are well hidden and the farther to the right they occur the more hidden they are visually and statistically.
I guess the part I really don't understand about designing systems to use fixed dollar position sizes and how they relate to real trading is that as time goes along and equity hopefully increases by their nature one is by definition on a percentage basis less and less invested when one does invest/trade. This raises the question of what does one do with the rest of the capital ? Leave it in money market ? My own personal perspective on investing/trading is that when I want to be invested, I want to be invested. This however doesn't preclude one from limiting the overall percentage invested on some trade or set of trades to more or less then 100% should the circumstances warrant that action nor does it preclude one from having several systems that one uses to trade different vehicles each with some PERCENTAGE of overall dollars.
Fred
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