Kelly Criterion & Risk Of Ruin As Risk Management Tool

Discussion in 'Risk Management' started by ironchef, Jul 4, 2017.

  1. ironchef


    Yes, from what I read. But Nobel Laureate can be wrong too.

    Best to you.
    #41     Jul 8, 2017
  2. ironchef


    Again, don't be too critical, he is right. I followed both your posts and I think both you and MrScalper are experts we can learn something from.

    There are many real professionals and experts here but also a few not quite knowledgeable. It is up to us readers to filter out the noises.

    #42     Jul 8, 2017
  3. MrScalper


    That is not the you know what your max drawdown can be?
    #43     Jul 8, 2017
  4. MrScalper


    No real use to the retail trader!

    Simple spreadsheet will suffice.

    All the risk management in the world will be of no benefit if you do not learn what is required in order to profit in a very challenging game!

    You must seek out, find, understand and be able and willing to implement what is required.. otherwise the chances of making any money worth talking about are zilch!
    #44     Jul 8, 2017
  5. MrScalper


    I know what I know..but I can never know the unknown unknowns :)
    #45     Jul 8, 2017
  6. ironchef



    2002-03 and 2008-09 were very painful years for me but I survived.:)
    #46     Jul 8, 2017
  7. ironchef


    #47     Jul 9, 2017
  8. MrScalper

    MrScalper admit that you do not know your worse case scenario..that is very dangerous.

    Some years ago I made a good deal of money with options trading..and like you I started to over-trade!

    One day I found myself looking at the ES market depth in a lock limit down was an experience I will never forget..and it cost me a good deal of money..but..mostly due to sure you know "exactly" what you need to do when..not if..the shit hits the fan :)
    #48     Jul 9, 2017
  9. Mtrader


    There is no certainty in trading, so nobody knows their worst drawdown.

    The only way out is to put fix stops and a max of losing trades in a row you accept, and even then you are no sure.

    Your biggest drawdown is the biggest till a bigger one appears.
    #49     Jul 9, 2017
  10. MrScalper


    Not correct..if you buy options your max loss is the premium you need to extrapolate!

    Daytrading also allows an astute trader limit losses.. unless of course he is a "daydreamer" :)
    #50     Jul 9, 2017