RE: Money management/leveraging - varying position size to control risk/enhance profit

["Volker" <volker@xxxxxxxxxxxxxx>]

Any MM approach on a single strategy on a single symbol rather than the more
complicated notion of portfolio management could be just another (hidden)
layer of over optimization. 

Try it after you found your combination of method and MM let's say on the
S&P on other related markets like the DJ, DAX, EuroStoxx... 

Kind regards,
 
Volker Knapp
(www.wealth-lab.com)
 

-----Original Message-----
From: ip [mailto:icp@xxxxxxxxxxxxxxx] 
Sent: Wednesday, October 12, 2005 3:12 AM
To: omega-list@xxxxxxxxxx
Subject: Money management/leveraging - varying position size to control
risk/enhance profit

I would like to open a conversation on the topic of money management.

There seems to be a wide variety of algorithms, but generically, the issue
addressed is the criteria of when to and by how much to increase the size of
positions taken.

So, my questions are;
* What approaches to money management have you had a positive experience
with?
* What approaches to money management have you had a negative experience
with?
* What importance to you place on money management?
* Which do you prefer - simple or complex money management strategies?
* Which is more effective - simple or complex money management strategies?

I'm thinking here mostly of managing the size of short-term trades on a
single strategy on a single symbol rather than the more complicated notion
of portfolio management.  However, all thoughts will be gratefully received.

Regards
Ian