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n a message dated 5/9/99 6:08:43 AM Pacific Daylight Time,
paan@xxxxxxxxxxxxxx writes:
<<
Do you adjust your money management formula to trade "good" markets more
heavily that the "mediocre" ones? >>
Second response
The ideal solution would be to forecast which markets are going to be the
best in the future. I think that it can be done to some degree by monitoring
historical volatility and detecting when volatility in a particular market is
expanding. This also has to be combined with measurements of directional
movement. The best markets if you are a trend follower would be markets with
expanding volatility and expanding directional movement. (Many big winners,
few losses.) The worst markets would be those with high volatility and no
direction. (Few winners, many big losses.)
Please share any ideas you might have on the subject. Its an area I have
been thinking about for some time but nothing concrete as yet.
Chuck
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