How is "money management" for traders different from large fund management firms?

[ScoobyStoo]

Quote from sjfan:

The problem is, how do you determine the loss that is "the maximum likely" in a time horizon. That's the literal million dollar question. If you can do that right, the rest is just arithmetics (or, at least reasonably solvable).

This is the smartest single comment on the thread and in my experience the correct route to the answer begins down on the French Riviera.

Forget using Kelly unless you are sat at a blackjack table. As has been stated here previously the underlying assumptions are fundamentally flawed when applied to the markets.

 

[OddTrader]

Here is the difference:
http://elitetrader.com/vb/showthread.php?threadid=165430

 

[sjfan]

And these examples of individual fraud and poor operational risk control are examples of what, exactly? that there are people who commit crimes?

Quote from OddTrader:

Here is the difference:
http://elitetrader.com/vb/showthread.php?threadid=165430

 

[Sir_Pirate]

Quote from rvince99:

that the criteria of wealth maximization is a poor criteria -- it is NOT the fund manager's primary criteria.

nice reading from very same Ralph himself exactly the same what my thought was, so no need to ask it. I've read ur Mathematics and i'm deeply thanked to ur work. Then i've read GARP's FRM handbook and definetly ur quote above sumarizes it all. In other words, the rich are already rich, beat inflation, and that's about it, no need for goin crazy like us ( me at least ) little fish.

imo

regards

 

[slickpick]

Quote from ASusilovic:

"The maximum likely" loss in a given time horizon depends a lot on your expected portfolio volatility and expected return, IMO.

Of course it is, both are components in the computation of VaR and ETL.