[EquisMetaStock Group] Re: Expectancy Vs Money Management

[chichungchoi <no_reply@xxxxxxxxxxxxxxx>]

Hi Andrew:
  Does TradeSim provide a tools for analysing the equity curve?
  How many types of position sizing techiques does it include?
  Will the code for programming TradeSim be the same as the code for 
Metastock?
Thank you for your suggestion
Eric

--- In equismetastock@xxxxxxxxxxxxxxx, "Andrew Tomlinson" 
<andrew_tomlinson@xxx> wrote:
>
> Eric
> 
> The only way you can do this satisfactorily is to do portfolio 
backtesting
> with a variety of position sizing rules and see what works for your 
style of
> trading. A program like TradeSim can do this well, and then you 
won't have
> to guess any more. Just remember to keep it simple so as not to 
mess up your
> degrees of freedom.
> 
> Personally I find volatility based position sizing works well.
> 
> Andrew
> 
> 
> 
> -----Original Message-----
> From: equismetastock@xxxxxxxxxxxxxxx 
[mailto:equismetastock@xxxxxxxxxxxxxxx]
> On Behalf Of chichungchoi
> Sent: Thursday, April 20, 2006 6:29 AM
> To: equismetastock@xxxxxxxxxxxxxxx
> Subject: [EquisMetaStock Group] Re: Expectancy Vs Money Management
> 
> Thank you for your reply
> 
> As you suggested, there is a complicated relationship among reward, 
risk and
> position sizing.
> 
> Which approach will be better to balance between risk and reward?
> Should I compare Expectancy [Reward] vs Max. Drawdown [Risk] or 
Profit
> [Reward] vs Max. Drawdown [Risk]?
> Do you have a better selection to balance between risk and reward?
> 
> If I get a group of indicators and test each of them to determine 
their
> reward and risk levels, the purpose is to select the most 
appropriate one
> for existing situation. Ideally, high expectancy will increase the 
chance
> for profitable trading, and low drawdown will increase the exposure 
of
> position sizing.
> 
> Do you have any idea on how to balance among three factors in order 
to get
> the most benefit from trading strategies?
> Reward, Risk and Position Sizing
> 
> Do you have any suggestion?
> Thank you
> Eric
>







 
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