|
PureBytes Links
Trading Reference Links
|
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
>
>
>
|