Id be interested on your thoughts of risk management methodologies like Kelly and Optimal F - if you're familiar.
I'm realising the number of samples/trades one uses can give stark differences in the amounts to risk )shouldn't be much of a surprise!). Any thoughts on what to base the number of samples or look back period on? volatility, business cycle, previous trend,fixed number: 40, 100, 200, or just what we feel at ease with. Other thoughts?
i will do a deep dive. but i am using 12 units of risk on the overall book, 3 max in a particular theme. So there is some diversification obviously but i don't go crazy. It works for me. The more lookback the better, but again, it also depends on your investment time horizon. If you trade over the next month only, 50-years worth of lookback makes little sense. Don't overcomplicated it and always check whether it makes intuitive sense. Hope that helps.
Reviewed this pre-open as this is my weak spot and found it to be informative. I now realize, after open, that I also suffer from premature evacuation. After a short treatise on luck, might you consider another on exits?
of course, absolutely love this tune, listened to it endlessly for hours. Michael was well known in the UK scene. A friend of mine actually signed him for his small label. Then Big little lies happened, the rest is history. Outstanding performer.
Id be interested on your thoughts of risk management methodologies like Kelly and Optimal F - if you're familiar.
I'm realising the number of samples/trades one uses can give stark differences in the amounts to risk )shouldn't be much of a surprise!). Any thoughts on what to base the number of samples or look back period on? volatility, business cycle, previous trend,fixed number: 40, 100, 200, or just what we feel at ease with. Other thoughts?
Thanks for any input.
i will do a deep dive. but i am using 12 units of risk on the overall book, 3 max in a particular theme. So there is some diversification obviously but i don't go crazy. It works for me. The more lookback the better, but again, it also depends on your investment time horizon. If you trade over the next month only, 50-years worth of lookback makes little sense. Don't overcomplicated it and always check whether it makes intuitive sense. Hope that helps.
Sure does. As someone said recently:
"Many look at others for answers, whereas the answer is right there inside your own head."
Looking forward to the future deep dive.
Thanks.
ha, genius! Lol.
gratifying-mention Michael on this side of the pond and one receives a blank stare
Reviewed this pre-open as this is my weak spot and found it to be informative. I now realize, after open, that I also suffer from premature evacuation. After a short treatise on luck, might you consider another on exits?
Addendum: forgot to add I enjoyed Line if Fire and wondered if this might catch your fancy-https://www.youtube.com/watch?v=nOubjLM9Cbc
of course, absolutely love this tune, listened to it endlessly for hours. Michael was well known in the UK scene. A friend of mine actually signed him for his small label. Then Big little lies happened, the rest is history. Outstanding performer.