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: byoneoka@xxxxxxxxxxxxx writes:
: << so these considerations: we can't/shouldn't try to forecast the market
: {implicit in choosing to trade a given system}, we never know when a
market
: meltdown will occur, and we can choose the priority of trading to manage
: risk--all argue against constant bet size under drawdown and for
asymmetric
: money management.
: CRLeBeau@xxxxxxx writes:
: However, what happens if the market meltdown you refer to occurs when you
: have substantially increased your bet size? Isn't that really the worst
case
: scenario?
:
: Seems to me that we both agree that we don't know when the meltdown will
: occur. But isn't this in fact an argument for a constant bet size that
will
: not have us risking too much just before the meltdown?
I got a litte problem with these messages regarding the market
meltdown...the presumption is that the only way to make money is to be long
and that market meltdown is a bad thing. C'mon, people. You've got to get
rid of this bias. It shouldn't matter if the market moves up or down, as
long as it moves. As long as you have this bias, it colors your thinking.
The only meltdown that matters is a meltdown that occurs in your account
equity. Now, that is a bad thing. :-)
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