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I have been accused of promoting Roy's newsletter. That accusation is
alleged and the merit as yet undetermined. Without admitting or
denying anything, if it sounds like I promote the newsletter, it's
because it's such a good MS tool that I think every MS user should use
it.
In fact, Equis should give everyone who purchases MS a free one year
subscription. (I'm sorry, I lost my head for a minute. I know that's
just being too rational.)
However, unlike Equis I don't ignore the users and what they need to
be successful. So as a gift to everyone who subscribes to Roy's
newsletter this month, I'm going to give you a terrific position
sizing indicator that calculates the number of shares of a particular
stock that you should buy based on your personal risk profile and the
volatility of the stock.
This is a powerful tool for position sizing, so don't ignore it. Test
it out and see if it improves your returns. It's based on sound theory
of money management.
CapitalAccount:=Input("Size of Capital Account",5000,10000000,100000);
RiskPercent:=Input("Account Risk Tolerance in Decimals.",0.001,100,0.01);
{This is the amount of your account balance you're willing to lose per
trade-- 0.01 equals 1%.}
VT:=Input("ATR Periods for Calculating Volatility.",1,100,10);
Bars:=Input("Number of Bars for Smoothing ATR.",2,100,10);
WhimpFactor:=Input("Personal Risk Profile-1 Cowboy to 7 Whimp",1,7,3);
{1 means you ride bulls and live hard, 7 means you're Mister
Rogers--most people fall in between.}
x:=Mov(ATR(VT),Bars,S);
RiskPercent*CapitalAccount/(x*WhimpFactor)
Plot this on the chart and read the shares to include in your
portfolio at the current price.
Yes, I know I'm giving it to you before you subscribe. I work off of
the honor system, so I know that everyone who reads this will honor
the deal and sign up. This one indicator alone is worth the price.
www.metastocktips.co.nz
I know who's being naughty and nice, I'm making a list and counting it
twice. So look out, Christmas is coming. It's not a good time to be
breaking the honor code. Okay!
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/equismetastock/
<*> To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
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