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Jean Jacques,
in your own, long and not marginal, experience between the various
ways to manage risk, and beside stop loss,
which one you would consider the safest? or is there a robust system that
you can apply to any market any time?
Best regards
gg
At 07:20 AM 12/07/2000 -0400, you wrote:
>Guy,
>
>About the stops, it is my almost 30 years experience that you can put NO
>STOPS at all. There may happen a completely unforeseen event that will triger
>a huge move and you need a sfety net. It does not mean that stops should be
>used as a normal way to get out of a position. Your stops may ne very far
>(and in such a case your position shouls be reduced accordingly) and never
>get hit. But they are there just in case.
>
>As for the initial margin, teh exchanges take into consideration the
>volatility to ask for the initial margin. In fact taking into consideration
>the initial margin as a mesure of the risk, you are indirectly taking into
>consideration the volatility, which makes sens . But you can not really rely
>on the exchange for that because they have their own policy which does not
>take into account exclusively the volatilty into account. I have seen initial
>margin raise from 3 or 4 % of the contract's value to % of the contract
>value. That's a big risk!
>
>Jean Jacques
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