Can money management alone create any edge?

Very true.
Though better hush up. Your 5% profitable traders absolutely need the other 95% kind in order to stay in business.

 

Free at last....

 

If it's truly a 50/50 system with NO restrictions (no table limits (or liquidity equivalents)), then a simple martingale system (in leu of MM) should be able to "beat" it.
(obviously not directly applicable to markets, but a fun idea nevertheless)

 

Only if you have infinite pockets, in which case, why even bother?

nitro

 

I think Kenny Rogers said it best:

You got to know when to hold em'

Know when to fold em'

Know when to walk away, and

Know when to run...

 

If it's disretion... it's called risk tolerant for me...

 

Well... I have to agree with nitro... and there's not much to add to his "vague" posts...

Though, as a tester and a researcher... I have not found a "significant" Money Management" model, which overcomes an obvious (in terms of statistics...) bad systme that MM can add value to other than curve fitting the "Positive Flaws".

...

... To make things easier for all everyone... I'm still waiting for a MM model that would make a 50/50 (1:1) coin flippin conditioned MM model that can turn profitable. For a fair sake, 100,000 spins per 1,000,000 spin on Monte Carlo and having 90+% confidence level.

I've never came across one and looking for one. If I did come up with one... I'll be a "billionaire" and share it with you...

If you ever do... post it here and I'll test it on random, ES, TY and NQ with 20+ year intraday data using my C# program...

 

I would bet that not *needing* to make money is a terrific predictor for making money as a trader.

 

There is no greater truth than that.

However, when you have tons of money, it is not whether you can make money or not (trading or otherwise) but whether you can beat buy and hold or some limiting case of that.

nitro