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Thomas,
I'm not sure you got my point ... but maybe you did and I just don't
follow your reply. I hadn't even gotten to talking about how
positionsize = in AB relates to what people do in real life trading
but it's my contention that for those that think they are not
compounding by using positionsize = positivenumber and that this is
the way they trade in real life, that if the number of positions they
are taking times the positionsize number continually approaches
available equity and that equity is increasing over time that this
too is a form of compounding even if bet size never changes. This of
course would be done in real life by one allowing more postitions to
be taken rather than by increasing bet size.
Fred
--- In amibroker@xxxxxxxxxxxxxxx, "tchan95014" <tchan95014@xxxx>
wrote:
> I agree completely. I think any time in a system design, if one
does
> NOT use positionsize OR use position = negative value, then one is
> compounding. That is when one use % for positionsize input then it
is
> compounding.
>
>
>
>
> In Fred's example, it is positionsize = -100 (100% reinvested) OR
> positionsize is NOT used at all (default = 100% reinvested)
>
>
>
>
> Thomas
>
>
>
>
> --- In amibroker@xxxxxxxxxxxxxxx, Fred Tonetti <ftonetti@xxxx>
wrote:
>
>
> > Regarding whether one in real life trading compounds or not it is
my
>
>
> > contention that EVERYONE trading stocks or MF's compounds in one
way
> or
>
>
> > another. (Futures because of the inherent leverage is a
different
> ball
>
>
> > game).
>
>
> >
>
>
> > By this I mean if today you have $1mm in equity and you get a buy
> signal
>
>
> > or a bunch of buy signals you invest your $1mm in one vehicle or
you
>
>
> > invest $10K each in potentially 100 vehicles i.e. you potentially
> get
>
>
> > 100% invested. By the time you have grown that original $1mm to
> $2mm
>
>
> > you are either investing your $2mm in one vehicle or you are
> investing
>
>
> > $10K each in potentially 200 vehicles i.e. you potentially get
100%
>
>
> > invested.
>
>
> >
>
>
> > Isn't this the way we all invest/trade ? Are those that say they
>
>
> > disdain compounding really saying that when they've grown their
$1mm
> to
>
>
> > $2mm that when they get a bunch of buy signals they are still
> investing
>
>
> > only $1mm and leaving the other $1mm in money market ? If that's
> what
>
>
> > you're doing then I'll take you at your word that you are not
>
>
> > compounding and have accepted the fact that over time you will get
>
>
> > declining returns on a percentage basis, but if you are
potentially
>
>
> > investing 100% even as equity grows then you are compounding.
You
> may
>
>
> > not be increasing bet size but you are compounding never the
less.
>
>
> >
>
>
> > Fred
>
>
> >
>
>
> > --- In amibroker@xxxxxxxxxxxxxxx, "Bob Jagow" <bjagow@xxxx> wrote:
>
>
> > > Fred,
>
>
> > > Though I innately rebel at pyramiding, AB would afford me great
>
>
> > pleasure by,
>
>
> > > as a 1st step, accepting subsequent buy signals that deserving
>
>
> > > tickers.triggered.
>
>
> > >
>
>
> > > Regards,
>
>
> > > Bob
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