PureBytes Links
Trading Reference Links
|
Yes I have which is why I said I must be one of the ignorant ones.
--- In amibroker@xxxxxxxxxxxxxxx, "MarkF2" <feierstein@xxxx> wrote:
> Have you read and tested the stuff in his book, or are you just
making
> a typically provocative comment?
>
> --- In amibroker@xxxxxxxxxxxxxxx, "Fred" <fctonetti@xxxx> wrote:
> > Ryan Jones ? OMG ... I must be one of the ignorant ones.
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "MarkF2" <feierstein@xxxx>
wrote:
> > > Hi Leo!
> > >
> > > Let me elaborate. Although I wouldn't put $.02 on a *simple*
> > > Martingale or anti-Martingale method of money management, I do
think
> > > that the latter is certainly viable while the former is not.
How to
> > do
> > > better? I'd recommend reading The Trading Game by Ryan Jones
*and
> > > then running simulations* of the tradeoff between equity growth
and
> > > drawdown for the various methods *for your trading systems*. I
> > > developed my personal favorites after reading this book but
everyone
> > > needs to look at their own curves from their own simulations for
> > > themselves to see what suits them best. This is a tedious
project
> > and
> > > not much fun, but well worth the effort in my opinion. BTW, if
you
> > > look at the reviews of this book on amazon, there are some
> > *incredibly
> > > ignorant* ones by people who obviously didn't take the time to
dig
> > in
> > > to the material and do their homework which to me, is running
> > > simulations on all of the methods. I have and trust me, lol,
> > there's
> > > good stuff in this book.
> > >
> > > Best Regards,
> > >
> > > Mark
> > >
> > > --- In amibroker@xxxxxxxxxxxxxxx, "leonardot19"
> > <leo.timmermans@xxxx>
> > > wrote:
> > > > Hi Mark,
> > > >
> > > > Which MM technique would you use than, can you give an example
> > > > please ?
> > > >
> > > > Kind regards
> > > > Leo
> > > >
> > > >
> > > > --- In amibroker@xxxxxxxxxxxxxxx, "MarkF2" <feierstein@xxxx>
> > wrote:
> > > > > Neither of these is a technique I'd put $.02 on, quite
easily
> > > > > demonstrated by bootstrapping representative trades while
> > applying
> > > > > them. Every time I mention simulation everyones' eyes glaze
> > > over,
> > > > but
> > > > > if you're not using it for position sizing or money
management
> > or
> > > > > whatever you want to call it, you're flying blind.
> > > > >
> > > > > --- In amibroker@xxxxxxxxxxxxxxx, "palsanand"
<palsanand@xxxx>
> > > > wrote:
> > > > > > Dave,
> > > > > >
> > > > > > There is a good link I came across:
> > > > > >
> > > > > > http://www.arbtrading.com/moneymanagement.htm
> > > > > >
> > > > > > I like the Anti-Martingale and Martingale (doubling up)
> > systems
> > > > to
> > > > > > manage drawdowns. I would use a combination of these
systems,
> > > so
> > > > > > that when I'm losing money I would use Martingale system
and
> > > when
> > > > > I'm
> > > > > > finally making money with the final position, I would be
> > > > > > automatically switched over to Anti-Martingale system,
but
> > may
> > > > most
> > > > > > likely exit losing positions at break-even price. I would
> > > double
> > > > > up
> > > > > > only when I get stronger signals verfied by OB/OS
conditions
> > in
> > > > the
> > > > > > subsequent session, so that my system of using 3BSMA for
the
> > > next
> > > > > > session is temporarily suspended. It does take usually
about
> > 3
> > > > > days
> > > > > > for a trend-change to fully develop. I would not double
up
> > > beyond
> > > > > 3
> > > > > > consecutive days, because if you are wrong 4 times in a
row,
> > > most
> > > > > > likely the market is starting a new trend in the opposite
> > > > direction
> > > > > > and will go against you and so better to exit. I have
done
> > this
> > > > > many
> > > > > > times, as I find it impossible to optimize my entry
points.
> > But
> > > > > the
> > > > > > safest course is to wait for the actual Trend-change
signal
> > > > > verified
> > > > > > by OB/OS conditions, then you may never have to double up
but
> > > you
> > > > > may
> > > > > > miss some signals. This may sound crazy for some but it
does
> > > seem
> > > > > to
> > > > > > work for me especially with the AFL pivot points to
predict
> > the
> > > > > Next
> > > > > > bar approximate High/Low of Day and appropriate position
> > sizing.
> > > > > >
> > > > > > Regarding whether your system has stopped working or not,
it
> > is
> > > > > hard
> > > > > > to say. I would try to improve the system performance
using a
> > > > > system
> > > > > > of filters, stops and walkforward testing. Easier said
than
> > > > done...
> > > > > >
> > > > > > Regards,
> > > > > >
> > > > > > Pal
> > > > > >
> > > > > >
> > > > > > --- In amibroker@xxxxxxxxxxxxxxx, "Dave Merrill"
> > > <dmerrill@xxxx>
> > > > > > wrote:
> > > > > > > I've been wondering, could I trade a system with 50%
> > average
> > > > gain
> > > > > > per year
> > > > > > > since '95, and max system drawdown of 40-50%. even if
I've
> > > seen
> > > > > > that in
> > > > > > > backtests beforehand, could I really look at that kind
of
> > > drop
> > > > in
> > > > > > my account
> > > > > > > and still believe I was doing the right thing? or would
I
> > > think
> > > > > > it'd finally
> > > > > > > just stopped working? and if I am able to ignore that
much
> > > > > > drawdown, how
> > > > > > > would I know if it really *had* stopped working?
> > > > > > >
> > > > > > > by the half-the-gain-twice-the-drawdown tolerability
rule,
> > > this
> > > > > is a
> > > > > > > non-starter.
> > > > > > >
> > > > > > > dave
> > > > > > > Defense ... Yep or as I've said it's not what you
make,
> > it's
> > > > > what
> > > > > > you
> > > > > > > keep. DD's are killers from lots of aspects not just
in
> > > terms
> > > > > of
> > > > > > > what they do to your account balance but also what
they do
> > > to
> > > > > ones
> > > > > > > ability psycologically to trade and stay with systems
that
> > > do
> > > > > > work.
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Rent DVDs from home.
Over 14,500 titles. Free Shipping
& No Late Fees. Try Netflix for FREE!
http://us.click.yahoo.com/ybSovB/hP.FAA/3jkFAA/GHeqlB/TM
---------------------------------------------------------------------~->
Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
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/
|