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Margin Calls and Rejected trades

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<DIV><FONT size=2>In his excellent book of "Trade your Ways of Financial 
Freedom" Dr. Van K. Tharp has given some Position Sizing models (Model-1 =&gt; 
One Unit per Fixed amount of money; Model-2 =&gt; Equal value Units for Stock 
Traders; Model-3 =&gt; The Percent Risk Model;&nbsp; Model-4 =&gt; The Percent 
Volatility Model) in chapter 12. He compared all the models along with the data 
of Net Profits, Rejected Trades, % Gain per Year, Margin calls, Maximum 
Drawdown. I cannot understand how to compute the Margin Calls and Rejected 
Trades.</FONT></DIV>
<DIV><FONT size=2>For example in Model-1 the unit (no. of contracts or no. of 
shares per unit) is fixed to 1 and the amount of money is fixed (say $X in the 
equity) and position may be taken irrespective of the risk. So say in a equity Z 
the no. of $X = Z / X hence the number of units is also same as no. of $X. Now 
if one unit cost is more than $X then should it be called margin calls or 
rejected trade. </FONT></DIV>
<DIV><FONT size=2>Perhaps many of this forum has gone through this book. Can any 
body like to explain how to compute them. With thanks</FONT></DIV>
<DIV><FONT size=2>BHANJA</FONT></DIV></BODY></HTML>

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