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PureBytes Links
Trading Reference Links
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Hey Mark ... What's happening?
pages aren't showing up on your web site? e.g.
http://www.markbrown.com/bands2.ht
etc.
etc.
Best regards
Walter
----- Original Message -----
From: "Mark Brown" <markbrown@xxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Tuesday, July 11, 2000 5:50 PM
Subject: Re[2]: Risk of Ruin
| Hello Kent,
|
| KR> I think the texts that recommend risking 2% per trade are recommending
that
| KR> as a guideline for discretionary trading and for beginning
discretionary
| KR> trading at that. After you've survived as a discretionary trader for
a
| KR> while, you should have a better idea of how much you can comfortably
risk.
|
| This discussion interested me so I went back and and figured out what
| my risk per trade is vs. margin set aside per model. It comes out to
| about 6 percent per position. I am certainly considered a gun
| slinger trader meaning high risk by some in the industry. So these
| other higher numbers just reinforce what I have been thinking all
| along - that exemplifies inexperience. That's what these traders
| are doing - babbling out loud and beating their chest. 20% percent
| per trade or more, yea right. A hardy har har from on top looking
| arrogantly down. mb
|
|
|
| KR> Since Guy has a system which a couple of years of data, he can compute
an
| KR> expected return (with a certain amount of error) and he has a good
idea of
| KR> how successful any given trade will be. With this information, he can
| KR> compute his "risk of ruin" (with a certain amount of error) and size
his
| KR> bets so that he maximizes gain with a "risk of ruin" that he is
comfortable
| KR> with.
|
| KR> Kent
|
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| --
| Best regards,
| Mark Brown mailto:markbrown@xxxxxxxxxxxxx
| Y = Offset + Amplitude * sin(Frequency * X)
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