|
PureBytes Links
Trading Reference Links
|
Thank everyone for suggestion
Risk = $$$ you are willing to lose on a trade - as a % of portfolio
Position Size = $$$ invested - How many shares do I buy ?
Expectancy = $$$ profit you make/lose on a trade before doing
something (exit, increase position, sell 1/2 etc)
I am confused now, risk and expectancy can be determined by system
tester in metastock. Does the risk represent Max.Drawdown? how to
determine the position size based the result of risk and expectancy?
Does anyone have any idea?
I will look into the excel spreadsheet and play with these parameters.
Thank everyone
Eric
--- In equismetastock@xxxxxxxxxxxxxxx, "Ed Hoopes" <reefbreak_sd@xxx>
wrote:
>
> An Excel worksheet has been uploaded to the files section that
allows
> you to play with these parameters.
> the title is "ExpectancyAnalysisDerived.xls"
>
> David is correct:
> Risk = $$$ you are willing to lose on a trade - as a % of portfolio
> Position Size = $$$ invested - How many shares do I buy ?
> Expectancy = $$$ profit you make/lose on a trade before doing
> something (exit, increase position, sell 1/2 etc)
>
>
> --- In equismetastock@xxxxxxxxxxxxxxx, "david" <dwei9361@> wrote:
> >
> > 1. Case two
> >
> >
> >
> > risk% * total_capital / (entryprice - initialstop)
> >
> >
> >
> > = 0.02 * $100000 / $2 = 1000 shares, assuming your entry price was
> $10 and
> > your intial stop was $8
> >
> >
> >
> > So actually 10% of your capital will be committed to the trade in
> this case.
> >
> >
> >
> >
> > 2. You may want to look at using a measure of volatility such as
the
> ATR in
> > determining your position size.
> >
> >
> >
> > Also you may want to consider putting a firm limit on the maximum
%
> of total
> > capital you will allocate to any one trade.
> >
> >
> >
> > Regards
> >
> >
> >
> > Dave
> >
> >
> >
> >
> >
> > _____
> >
> > From: equismetastock@xxxxxxxxxxxxxxx
> [mailto:equismetastock@xxxxxxxxxxxxxxx]
> > On Behalf Of chichungchoi
> > Sent: Wednesday, 8 March 2006 10:58 AM
> > To: equismetastock@xxxxxxxxxxxxxxx
> > Subject: [EquisMetaStock Group] Risking 2% for investment, but
what
> to do
> > with the the rest of 98%?
> >
> >
> >
> > Account balance is $100,000, I would like to risk 2% [$100,000 x
2% =
> > $2,000] for my investment and would like to purchase XYZ stock at
$10,
> > and project the target level at $14 with stop loss level at $8.
> >
> > How much shares should I purchase?
> >
> > In case 1, number of shares = $2,000 / $10 = 200 shares.
> > I should invest $2,000 for this trade, and require only $2,000
for this
> > investment. Do I put $98,000 into saving account?
> >
> > In case 2, number of shares = $2,000 / ($10-$8) = 1,000 shares
> > I should risk $2,000 for this trade, and require 1,000 x $10
=$10,000
> > for this investment. Do I put $90,000 into saving account?
> >
> > Does anyone have any suggestion on how much shares I should
purchase
> > for 2% risk? How to utilize more capital for investment and still
> > maintain 2% risk?
> > Thank you
> > Eric
> >
> >
> >
> >
> >
> >
> >
> >
> > _____
> >
> > YAHOO! GROUPS LINKS
> >
> >
> >
> > * Visit your group "equismetastock
> > <http://groups.yahoo.com/group/equismetastock> " on the web.
> >
> > * To unsubscribe from this group, send an email to:
> > equismetastock-unsubscribe@xxxxxxxxxxxxxxx
> > <mailto:equismetastock-unsubscribe@xxxxxxxxxxxxxxx?
subject=Unsubscribe>
> >
> > * Your use of Yahoo! Groups is subject to the Yahoo!
> > <http://docs.yahoo.com/info/terms/> Terms of Service.
> >
> >
> >
> > _____
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
------------------------ Yahoo! Groups Sponsor --------------------~-->
Try Online Currency Trading with GFT. Free 50K Demo. Trade
24 Hours. Commission-Free.
http://us.click.yahoo.com/RvFikB/9M2KAA/U1CZAA/BefplB/TM
--------------------------------------------------------------------~->
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/
|