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I attended a Larry Williams and Jake Bernstein Real time seminar and
watched LW in public and in private to his broker. The simplifed version of
his money management was as follows
Ask for your capital balance say $100,000
Your risk factor he quoted was 10 to 20 % He uses 20%
hence he has $20,000 to use
He then uses his last largest loss per contract say $2000
This allows him to trade 10 contracts.
This is the basis of the system but I feel that it is a lot more complex as
he has a software program that calculates the figures
Both LW & JB have data bases with past history where they compare their
trade for today with a similar trade same day of the week and same week for
previous years up to 8 years
If they do not get a result of greater than 75% from the history they
appear not to do the position trade.
These seasonality charts are not only for commodites but for the S&P and
bonds and other indexes
LW said that he did not use money management when he won the futures
trading years ago but gaming techs(???)
He was up $2.2M with 3 weeks to go when reduced it to$750,000 in very few
trades.
He ended with $1.2M
LW software appears also to check his trading history and apply gaming
techs to these.
Todate I have not seen any software that does this type of money managment.
The JB data base of seasonal trades searches to find the most sucessful
trades for a month from the past mainlt commodities
I am interrested in financial indexes only
Has anybody know of any similar software
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