Money Management

Discussion in 'Risk Management' started by Spectre2007, Jan 21, 2007.

  1. About the MM traps on the referred article at http://www.isigmasystems.com/mm2.html the authors conclude: Kelly formula? no because... etc etc.. then optimization formula? ... no bc... etc etc.. and finally "What all of these methods have in common is that they address one aspect of money management while neglecting all the other aspects. The solution: Use a money management strategy which deals with all aspects of proper position sizing. "

    - Well, which is then the 'proper position sizing'? the famous 1/2% commonly used , e.g. 1.5% is finally 'demonstrated'!