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Another book that I highly recommend is Tharp's book: "Trade Your Way to
Financial Freedom", which drives home the same points on money management.
Jan
----- Original Message -----
From: Guy Tann <grt@xxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Wednesday, April 21, 1999 11:21 PM
Subject: RE: Money management
> I would second that thought. We've spent over 40 years developing better
> and better trading systems and never once looked at money management.
Every
> time we took a hit, we went back to the indicators and made them even
> better. Now that we've bought a few books, we discovered that even with
our
> system, as good as it is, we were running a 100% risk of ruin!
>
> We've now revised our trading to include money management techniques, and
> have dropped our risk of ruin to approximately 1 to 2%. My brother is
> working on even more sophisticated stuff while I rewrite all of our
trading
> software to be Y2K compliant.
>
> If we would have used proper money management techniques for the last 40
> years, we would be almost at the top of the Forbes list. <BG> Maybe in
> another 40 years, we'll make it.
>
> Guy
>
>
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of TKruzel
> Sent: Wednesday, April 21, 1999 7:09 PM
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Money management
>
>
> In general I would recommend the book. How useful it is to any
> given individual depends upon the mathematical background of that
> person. I thought it was well written. IMHO would be traders spend
> much too much time creating indicators. None of these indicators in
> the long run will give you more than a 50:50 chance at making money.
>
> The real "holy grail" is managing money and risk. Those are the only
> factors that you can control and the only way you can win in the long
> run. It is unfortunate that the writers of trading software totally
> ignore this aspect. Much more emphasis should be placed upon developing
> a product that allows one to test more sophisticated money management
> strategies (e.g. legging in, legging out, moving stops, pyramiding, and
> betsize relative to total equity). But I suppose most people hate math
> and like pretty pictures so that is the target market for so called
> trading software.
>
> OK. Sorry for the rant. Yes I would recommend the book.
>
> Regards,
> Tim
>
> Glen Wallace wrote:
> >
> > Has anyone read "The Mathematics of Money Management" by Ralph Vince?
It
> > was recommended to me as an advanced, yet practical book on money
> management
> > and risk management.
> >
> > Any comments?
>
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