|
PureBytes Links
Trading Reference Links
|
----- Original Message -----
From: "Bob Bolotin" <bob4olist@xxxxxxxxxxxxxxxx>
> Say your system uses a trailing stop. As a
> trade moves profitable, the trailing stop will eventually reach the trade
> entry price. Your risk on that trade is now $0 (of course, this is
> discussion is excluding slippage). So, here is an interesting idea. Since
> you were willing to risk 5% on the initial trade you could consider adding
> more contracts to the trade at this break even point and bring your
current
> $0 risk back up to the 5% of account level.
It's an intresting idea and i believe to remember that Tharp in his
Money Management report talked about it also.
I would be very curious what it would do with the results of a
system. It would be very clear from the start, that this kind of
money management would increase the loosers since every time
you are at a "risk of $0" you increase the risk again. It would
probably mean that you would need some very big winners
to overcome the many losses you would have.
If at some point in time, your program is capable of doing
backtests like this, i think this list would be intrested in some
of the results. I know i would be.
Greetings
and thanks in advance.
|