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Monte wrote:
> > Tim I have sometimes reached the point where I almost believe random walk with good money management can achieve profitable trading. By all means, post away.
>
> Monte
>
You know, I was at a dinner hosted by a large commodity pool and we did have a discussion of money management and how important it was to any style of trading. And
one of the traders sitting at the table offered us a bet: There were six of us, including him. The five of us would give him a position at the closing price of
today's markets in a market. He would take the five positions, marked to the close of today, and trade them tomorrow. He could hold them or take a loss or take a
profit[We had him call a broker-friend and mock-place the trades in real time,so he couldn't trade with hindsight]. And he bet us no matter what five markets or
positions we chose, he would make a profit. His contention was that it was the money management was more important than the setup and entry level of the trade, if
there were more than a few trades.
You can guess that out of curiousity, we took his bet, each gave him a position and at dinner the next night, we looked at the results. You guess the outcome.
Tim Morge
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