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The "Turtles" have been turned into turtle soup the last few years ...
--- In amibroker@xxxxxxxxxxxxxxx, Yuki Taga <yukitaga@xxxx> wrote:
> Hi Al,
>
> AV> But, Thomas, you don't trade with 1% equity. You RISK 1% of
> AV> current equity (the Turtles risk 2%) on each trade, at least
> AV> initially. Risk is defined as the amount of money you are
willing
> AV> to lose on any given trade, not the amount of money invested in
> AV> the trade. Big difference. So, the AB code is:
>
> AV> PositionSize = -1*BuyPrice/(2*ATR(15));
>
> AV> The Turtles risk 2%, so you would substitute -2 for -1 in the
> AV> above example. As they add on positions, each unit they add is
> AV> another 2%, but the risk for the first unit is decreased by half
> AV> a unit, and so on. Money management is the key, not the actual
> AV> entry and exit system.
>
> When I looked at the Turtle System (admittedly some time ago) I
> thought it was very hard for them to categorically state that they
> had a finite risk on their positions. In theory, yes. But since
> they actually inverse pyramid (as I understand it) they seem to get
> quite far out on a limb, risk-wise. If things go well, they will
> make a killing. But, if there is a sharp gap pullback, the top of
> the inverse pyramid will lay waste to their risk management scheme.
>
> Perhaps my understanding of this is not as it should be.
>
> Best,
>
> Yuki
>
> mailto:yukitaga@x...
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