As for position sizing, I use 1.5% fixed percent risk.
This 1.5% risk is from Total Trading Capital as per TradeSim's definition, which is money in the bank, plus all money allocated to existing open trades.
So "Total Trading Capital" is dependant only on closed equity, not open equity.
Hi Nizar, Trying like you to show on a blog that long term trading systems are still available, I am a regular reader of The Trend Follower and I sincerely hope that 2008 will put your porfolio back on its feet.
Nevertheless, I'm still wondering why you still don't use a kind of market filter to avoid such a drawdown (28% since 2nd of november). I cannot give any lesson because my results are very poor (-3,7% since 7th April 2007), but I'm certain that they would have been much worth if I had not used such a market filter. Are you currently testing anything in that way ?
I started out in trading early 2005 through managed funds.
November 2005 started in stocks through fundamental analysis.
After the 2006 May correction I learnt to use stops!
A few months afterwards I read Michael Covel's book and it was a real eye opener for me into what can be achieved through mechanical systems trading.
In 2009 I started looking seriously at short term automated trading through AmiBroker/IB as this would allow for all the benefits of short term trading (smoother equity curve, faster recovery from drawdowns, etc) without the associated screen time.
4 comments:
Hi Niz,
Just a quick one...it doesn't look as though you are using any leverage...is that correct?
And your position sizing model says buy parcels that represent 8% of total equity?
ASX.G
Hi ASX.G,
Correct, I do not use any leverage.
As for position sizing, I use 1.5% fixed percent risk.
This 1.5% risk is from Total Trading Capital as per TradeSim's definition, which is money in the bank, plus all money allocated to existing open trades.
So "Total Trading Capital" is dependant only on closed equity, not open equity.
Hope that helps.
Nizar.
Hi Nizar,
Trying like you to show on a blog that long term trading systems are still available, I am a regular reader of The Trend Follower and I sincerely hope that 2008 will put your porfolio back on its feet.
Nevertheless, I'm still wondering why you still don't use a kind of market filter to avoid such a drawdown (28% since 2nd of november).
I cannot give any lesson because my results are very poor (-3,7% since 7th April 2007), but I'm certain that they would have been much worth if I had not used such a market filter.
Are you currently testing anything in that way ?
Hi j2l,
A filter based on the market index is currently in the process of being developed.
Thanks for your thoughts.
Nizar.
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