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In a message dated 8/10/00 10:45:02 AM Eastern Daylight Time,
john@xxxxxxxxxxx writes:
<< As I understand Guy's system, and that's probably the worst assumption
anyone could make, he uses a stop and reverse approach. So while he doesn't
use stops in essence when his system reverses that is in itself a stop.
Maybe he doesn't call them stops but when his system signals him to reverse
a position it is telling him first to stop his current position and initiate
and new position in the opposite direction.
I use stops because my system isn't as good as Guy's and that keeps my
pucker muscles relaxed. >>
That means also that he is always in the market? Anyway I understand your
point. In some previus discussion Guy said that his maximum risk was the
initial margin (!). I guess that none of the systems that I have seen is as
good as Guy's nor any of the systems that companies like Caxton or
Commodities review everyday . Otherwise they would have changed their
policies never to allocate one cent to somebody without a risk control
strategy.
But I understand that some people may feel confortable trading this way. I am
not sure it's a good example to give.
Jean Jacques
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