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Here's a series of money management articles that will explain a
variety of techniques for position sizing, etc.
http://members.aon.at/tips/moneyMan1.htm
If some of you want to learn about money management, read these and
then look at the code I posted.
Others may prefer to forget the education and just post their opinions.
--- In Metastockusers@xxxxxxxxxxxxxxx, "superfragalist"
<jackolso@xxxx> wrote:
> DM, this is strictly for entry sizing. Exit timing and amounts are
> another topic altogether.
>
>
>
>
> --- In Metastockusers@xxxxxxxxxxxxxxx, "eastwind987" <dm999@xxxx> wrote:
> > Superfragalist,
> >
> > What a wonderful formula you gave us! The key to making money in the
> > stock market is knowing how to manage risk and reward, and your
> > formula makes it easy. The Turtles used ATR(14) combined with a
> > calculation for the value of a futures contract; but I never
> > translated that calculation to stocks.
> >
> > Do you use this formula to tell you when to adjust your position in a
> > stock? In other words, do you sell half of the position when the ATR
> > gets to a certain point, which would re-balance the risk?
> >
> > I already subscribe to Roy's letter, and look forward to every issue.
> >
> > dm
> >
> > --- In Metastockusers@xxxxxxxxxxxxxxx, "superfragalist"
> > <jackolso@xxxx> wrote:
> > > 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!
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