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Guy
I don't know anything about the Balsara book. Actually I don't know anything
about Ralph Vince's book either, I just read other peoples mail <g>. I'm
going to forward a post from the Realtraders list shortly that has some
interesting discussion of optimal f and other position sizing systems.
John Manasco
----- Original Message -----
From: Guy Tann <grt@xxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Saturday, July 08, 2000 4:42 PM
Subject: RE: Risk of ruin, amount per trade formula?
> John
>
> Here I come from a basis of ignorance again, but is the Balsara book and
> charts we're using based on Optimal f? I'll have to ask my brother as I
> haven't received my copy yet. All I can say is, if it is, it appears to
be
> working for us since we've weathered two major losses without a problem
and
> are currently building some substantial equity positions. Granted, the
only
> thing we've done is reduce our investment to 33% from 50%. It has made a
> significant difference.
>
> Guy
>
> Paranoia...you only have to be right once to make it all worthwhile!
>
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
[mailto:owner-metastock@xxxxxxxxxxxxx]On
> Behalf Of John Manasco
> Sent: Saturday, July 08, 2000 4:57 AM
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Risk of ruin, amount per trade formula?
>
> I wish some of you guys would get on the Realtraders forum. They recently
> had a fairly lengthy discussion on the optimal f formula and came to the
> conclusion that it was not only worthless it would almost guarantee ruin
if
> implemented at the wrong time. But the better conclusion is to join the
> Realtraders discussion forum as they have some very bright professional
> traders who like to share their knowledge.
>
> John Manasco
>
> ----- Original Message -----
> From: Guy Tann <grt@xxxxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Saturday, July 08, 2000 1:38 AM
> Subject: RE: Risk of ruin, amount per trade formula?
>
>
> > Thanks Glen.
> >
> > While all three of us have backgrounds in math, statistics and
economics,
> we
> > really haven't spent the time necessary to dive into Vince's books. I
> think
> > that's why my brother took the easy way out and went with Balsara's
> charts.
> > :)
> >
> > Guy
> >
> > Paranoia...you only have to be right once to make it all worthwhile!
> >
> > -----Original Message-----
> > From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On
> > Behalf Of Glen Wallace
> > Sent: Friday, July 07, 2000 6:49 PM
> > To: metastock@xxxxxxxxxxxxx
> > Subject: Re: Risk of ruin, amount per trade formula?
> >
> > To add to Guy's comments, Ralph Vince's first book, "Portfolio
Management
> > Formulas," has a comprehensive chapter on risk of ruin. His second
book,
> > "The
> > Mathematics of Money Management," contains a condensed version of his
> first
> > book in the first chapter, but glosses over risk of ruin. Both are
> > excellent
> > books and easily the most important books in my bookshelf. They are
not,
> > however, for the mathematically challenged.
> >
> >
> > ----- Original Message -----
> > From: "Guy Tann" <grt@xxxxxxxxxxxx>
> > To: <metastock@xxxxxxxxxxxxx>
> > Sent: Friday, July 07, 2000 5:20 PM
> > Subject: RE: Risk of ruin, amount per trade formula?
> >
> > > Sonny and Mike,
> > >
> > > I made an error here. We bought the following books from Amazon.com:
> > >
> > > The new Money Management by Vince
> > > The Mathematics of Money Management by Vince
> > > Money Management Strategies for Future Traders by Balsara
> > >
> > > The "Risk of Ruin" chart we're using came from the Balsara book
> (according
> > > to my brother). I'm ordering my own copy.
> > >
> > > I'm sorry if I misled anybody.
> > >
> > > Guy
> >
> >
> >
>
>
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