"New Money Management"
- Thread starter swoop[TR]
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There is simple software at www.intelsyst.com Momey Manager that use optimal f. But i have read that some traders recommend to use F/2 <= F < optimal F
regards
regards
Pit Bull
Dancing With Lions
Only 2 books that menat something. Others promise what they can't deliver.
Dancing With Lions
Only 2 books that menat something. Others promise what they can't deliver.
Optimal F is a concept like E=mc2: simple. But when you want to build a nuclear power plant only knowing E=mc2 is not enough 
. But if you don't know the concept sure you can't build such a plant. So Optimal F is useful new concept compared to the old VAR preconised by the "officials" risk theoricians from JP Morgan School but VAR is now known to be poor risk concept. So Optimal is a progress compared to VAR but the problem in Optimal lies in practical determination of the real value. Just the same problem you have if you want to determine the true average of a population from samples: you will never get the true value although it exists.
. But if you don't know the concept sure you can't build such a plant. So Optimal F is useful new concept compared to the old VAR preconised by the "officials" risk theoricians from JP Morgan School but VAR is now known to be poor risk concept. So Optimal is a progress compared to VAR but the problem in Optimal lies in practical determination of the real value. Just the same problem you have if you want to determine the true average of a population from samples: you will never get the true value although it exists.