|
PureBytes Links
Trading Reference Links
|
Below are my questions that were never completely answered.....because this
is a difficult (but CRITICAL) systems trading issue !!! I believe Murray can
answer this one....he is a pre-eminent guru.
My "gut" tells me that optimization will show that current win/loss ratio
and average trade win % are ALSO critical factors to be applied. The issue
of scaling-up with an existing position vs. scaling-up in the NEXT position
are ones that baffle me. Optimization will also probably show that tighter
stops are required when position moves up.....but expect that win/loss ratio
to start dropping ! The "K-Ratio" stat is something I want to look at too.
----------------------------------------------------------------------------
-----------------------------
I totally agree......but what are the proposed rules for scaling up or
scaling down position size ??
1) based on open position profits/losses ?
2) based on strength/weakness of indicators ?
3) based on duration of current position ?
4) a combination of ALL or some of the above ?
I have read Murray Ruggiero's book closely (Cybernetic Trading Strategies)
and although it has taught me much about developing trading systems, it has
skirted this topic entirely.
This indicates to me, it is an IMMENSELY complex issue to deal with.
BTW: Perhaps Murray can address this himself ?? (got his e-mail address ?)
Let's keep in mind the Larry William's story (and many, many others) that
have "pyramided" trading profits into additional positions.......with
disasterous consequences.
> -----Original Message-----
> From: Valinda48524@xxxxxxx [mailto:Valinda48524@xxxxxxx]
> Sent: Tuesday, February 15, 2000 2:37 PM
> To: code-list@xxxxxxxxxxxxx; Omegalist
> Subject: Which holds best promise?
>
>
>
>
> Which of the following trading approaches holds the most potential?
>
> 1) Position adjustments
>
> 2) Pattern recognition
>
> 3) Stop management
>
>
|