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In a message dated 07/13/2000 5:24:55 AM Eastern Daylight Time,
grt@xxxxxxxxxxxx writes:
<< I'm just having a problem determining
what level of investment your figures would consider prudent.
>>
I will answer with the numbers I feel confortable with but this is my level
of comfort and one can have a different one. It has to be put in relation
with some other numbers.
I am personally comfortable with a risk per trade of between 3 and 5% , which
by the standard of our industry would probably be considerd big. But I
consider the frequency of the trades. For instance if you trade very little I
am ready for the bigger number. If you tarde a lot I prefer a smaller number.
I will also consider if you trade an entire portfolio or not. If you trade an
entire portfolio and have usually several positions at the same time I prefer
a lower risk per trade because I am scared of unseen correlations and you
risk on the overall potfolio is rising a lot. Of course a big percentage of
winners as you have allows for a greater risk/trade etc .
Jean Jacques
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