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If I understand correctly, in Mark Johnson's trading scheme with Aberration,
"betsize" is a function of equity level in the account, and a factor "A" which
varies according to the "aggressiveness" of the account holder at different
levels of equity, say, for example, more cautious at first when account equity
is very small (<$30,000), more agressive as the account grows, then more
cautious as the account becomes really large (>$1,000,000).
"Betsize" has nothing directly to do with results of trades in the immediate
past, other than of course to lower the betsize if the equity has been
diminished.
Am I getting this, Mark?
Jim Allen
Rus Newton wrote:
> This discussion is very interesting.
>
> Surely, for a martingale-type (or reverse-martingale) betting strategy to be
> an improvement over a regular "1-lot", there must be some degree of
> auto-correlation between consecutive trades within a system; otherwise, I
> don't see (statistically) what is gained by changing bet size.
>
>> SNIP <<
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