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Hi,
Thanks in advance for your input :)
Marco
David Jennings a écrit :
'am away on business for a couple of
days and will respond on return.
-----
Original Message -----
Sent:
Tuesday, March 22, 2005 10:44 AM
Subject:
Re: [EquisMetaStock Group] Van Tharp's Money management (%Volatility
Model) : need help !!!
Hi David,
Thanks for your explanation. I understand this model applied to stocks
now :). In other words, the "point value" for stocks is always equal to
1.
By the way, why do you say Van Tharp's work is not worthy ? ( what are
the pros and the cons ?).
Regards,
Marco
PS : I'll take a look at Kase' books.
David Jennings a écrit :
Marco,
For what van Tharp's rubbish is
worth, assuming 50K USD and purchasing microsoft, then Microsoft is
trading at 24.31 with a daily range of 0.5. Lets say that the ATR for
the last 10 days is 0.5. Then the volatility is 50 USD per hundred
shares. Using his 2% of equity at risk i.e. $1000. Thus using his
logic you would buy 2000 shares - assuming your stop was placed 1 ATR
below the purchase price.
I would counsel you to have a
read of Cynthia Kase's book. The piece on Dev stops is well worth the
purchase price in its own right.
----- Original Message -----
Sent:
Monday, March 21, 2005 9:52 AM
Subject:
[EquisMetaStock Group] Van Tharp's Money management (%Volatility Model)
: need help !!!
Hi,
I am currently reading Dr Van Tharp's book "Trade Your Way to Financial
Freedom" and I just can't understand his "Percent Volatility Model" for
stock trading (he gave examples with futures but unfortunately not with
stocks !).
Might anyone explain me with a example his "Percent Volatility Model"
applied only to stocks.
Thanks in advance for your help,
Regards,
Marco
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