Re: Money Management

[heypeter@xxxxxxxxxxxxxx]

Hi Ralph

I have all 3 of your books, and think they should be mandatory reading
for all traders.  Similar to your landscape metaphor, I think of these
antimartingale money management systems on a continuum, a perspective
something like . . .

Unit Contract trading	->	->	Fixed ratio	->	-> 	Optimal f
Conservative								Aggressive
Traders who are most absolute risk averse				Least ARA Tdrs 
least wealth maximisers							most w m

Anyway, I have 4 questions I would like to ask:
1/ In your third book on pg 23, you mention the problem of predicting
where the peak is moving to.  Any chance you could shed some light on
this key question?  
2/ What is your considered opinion of equity curve trading?
3/ You state that DD is meaningless, but what if you do a monte carlo
simulation of DD?
4/ Any danger of a 4th book? ;-)

Thanks for your time

Peter Chan

r v wrote:
> 
> As far as the questions on money management you've raised from
> attending Omega world, here are my thoughts:
> 
> Based on your questions, it seems you are looking for a "path," or a
> direction, having been exposed to different paths or systems on money
> management.
> 
> My suggestion is to forget all of this for the time being.
> 
> With technical systems, you need to first develop a perspective before
> you can create systems that work. First, you learn about constructing
> charts, developing indicators, etc. You develop a perspective. When
> someone talks about price acting in a certain way, you envision it in
> your head in a bar chart, for example.
> 
> Likewise with money management. You need to first develop a mental
> picture, a perspective, of what is going on in terms of money
> management.
> 
> When I do that, I see we are on a landscape, and that most of the
> money management systems we see, read or hear of, just have us
> somewhere on this landscape, or traversing this landscape in a certain
> fashion through time.
> 
> I'm not speaking badly of ANY of these systems. I am simply saying
> that by developing a mental framework - a perspective - on money
> management, you can judge these different money management methods and
> arrive at your own conclusions.
> 
> When I speak of this landscape, I am talking about a mental picture -
> a perspective - which I arrived at pertaining to money management. I
> reluctantly advocate it. I say this because, for me, it works.
> However, there may be better perspectives out there than the one I
> arrived at.
> 
> Sincerely,
> 
> Ralph Vince