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Re: Re: Rethinking the 2% MM rule...



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In a message dated 7/31/98 6:45:03 AM, bfulks@xxxxxxxxxxxx wrote:

<<If you define leverage as:

   Leverage = <Value of contract> / <Starting account size> - 1
>>

Don't like your formula.  A contract of Eurodollars is worth  a million $,
much more the value of an S&P.  Which contract has more risk?  Seems to me
that the formula should be based on volatility not size of contract.  Even
true in stocks.

LeBeau
traderclub.com