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I would say that 90% of the the discussion on this list about indicators and
systems relates to entries. I realize (as do all the vendors) that entries
create the most interest. However, I have read, and believe, that a system's
success is much less dependent upon the entry than the exit and position
sizing. I have read studies that the best entries "rarely" have greater than
55% accuracy and that the best exits can make money with any entries.
Varying position size can increase returns per $ invested by huge amounts.
I would greatly look forward to discussion on position sizing techniques.
BTW, I want to thank Chuck LeBeau for being a catylst for me to establish
better exit systems. Most of you know that he has developed exits based on
average true range. His work prompted me to develop proprietery exits that
even work better.
I have seen very little discussion for simple "position sizing" techniques
for the small trader (less than a $Million) for stocks. Most discussion has
been about optimal f or a derivation or some other complex method.
Would those that have developed, tested and used a "position sizing"
technique (other than the complex ones described above) for stocks, please
share those with the list?
Russ
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