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Hello
I found your post on money managent very interesting. I am a newcomer to the
list, although I have gone deeply through the archives, and relatively new
to trading: basically my experience consists on research on long term trend
following mechanical trading systems. I would appreciate if you or any other
menber of the list could expand more or give me references on the following;
1. Scaling in/out as a way of protection (not exposing to much at the
begining of a trade) and maximizing your profits (let profits run)
2. You mentioned some notes of Chuck's TAG lecture some years ago. How could
I get them? Please give any other reference to book, author,etc you consider
valid
3. I guess that what you mention as volatility trailing stops is based in a
certain X ATR of the last Y days? (I myself find it very useful, as the
"turtle" way of determining how many contracts to trade related to
percentage of equity risk and volatility (ATR).
Thank you very much to all of you for your insight and help; I am looking
forward to learn from you
Best wishes
Bernardo Martin
> ----------
> I assume you're familiar with Ralph Vince's work. Though I haven't
> read his books myself, he seems to have a solid reputation, and as I
> understand it, he offers mathematical ways to decide how much of your
> capital to risk, depending on your estimation of the probabilities of
> your "system."
>
> For futures trading, it seems to me the interesting part of money
> management IS in the trade analysis, specifically the exit strategy.
> And for this, I think the most useful work I've seen is Chuck LeBeau's.
> I keep meaning to review my old notes of Chuck's TAG lecture some
> years ago. The part that sticks in my mind is the idea of adjusting
> your trailing stop based partly on the short-term market volatility.
> Pretty simple idea, really, but very useful, I think. Chuck's also
> got a website with some very interesting things on it. To my
> infinite embarrassment, I can't find Chuck's URL right now...
>
> The other interesting aspect of futures-trading MM I don't see
> discussed very often is the old scale-in/scale-out question.
> It seems some people who have the luxury of trading multiple contracts
> like to put them all on initially, then peel some of them off quickly.
> Others like to add contracts one at a time, depending on how the
> trade is unfolding. Exiting could be all at once, or a scale-out.
> Unfortunately, I've seen proponents of one approach ridicule members
> of the other camp.
>
> I myself prefer the second, scale-in, approach. Putting all your
> contracts on exposes you to the maximum risk, which can be expensive
> if you're a little guy. If you add contracts once the trade is
> going your way, you're playing with the house's money.
>
> I think your support/resistance level approach is right on target.
> The question is what time frame do you look at to pick those levels;
> the same as you used for your entry? longer? shorter?
>
> Interesting subject, thanks for bringing it up.
>
> Jim
>
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