Re: Risk of ruin, amount per trade formula?

["Walter Lake" <wlake@xxxxxxxxx>]

Hi John

Thanks for posting

I agree ... this is what I've been hearing from the traders that I know for
the last year. The math looks impressive but as one trader said "... home
grown and dangerous".

However, those traders that like it and use it ... love it! Lots of definite
opinions both ways.

Best regards

Walter

----- Original Message -----
From: "John Manasco" <john@xxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Saturday, July 08, 2000 7:57 AM
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
| >
| >
| >
|