Jimmer![]() Member Posts: 22 Joined: 10/11/2012 Location: Wittmann, AZ ![]() | Hello All, At the risk of adding to the complexities of OV/TP implementation we have an additional resource to help adjust position sizes for volatility: the concepts of John’s coastal neighbor in Brisbane, Daryl Guppy, in GMMA2 . It definitely is a strategy; I think it might/could be used to continually adjust port/account funds settings.It uses a concept of Count Back Lines (CBL) to limit risk, in a rally starting from the base breakout, then continuing throughout the trend to the topping and breakdown phases by adding and subtracting positions, of varied sizes, as made desirable by changing volatility. Short side works too. Most obvious is its value as an OV strategy because it follows RTM. It might be possible to dollar size continually variable allocations for strategies, ports, and accounts using the CBL and/or the measureable converging/diverging of the Guppy Multiple Moving Average (GMMA) of an index. Or simply maybe an MA of an MA, got to think about that. I use the VTI Total Market Index ; better than SPY IMHO. Sorry for drifting, back to the CBL. The CBL strat is better, less risky pyramiding and I think better than Turtle. The CBL counts back an adjustable number of bars (default 3) to identify recovery (not the bottom) from a base and signals a small (pilot) position. Going forward the CBL signals additional larger positions in the breakout and trend while also maintaining stop losses and it self-adjusts for volatility at each bar regardless of timeframe, RT/EOD. Another important feature of the strategy is that as the trend progresses in the last third or so of the run where there is more risk of failure or breakdown additional positions are progressively smaller thereby minimizing risk; the last position is smaller than previous ones. Too, when in mid-trend when it can be difficult to tell, until it’s too late, whether a pullback is merely a breather or a breakdown the CBL stop loss can exit the latest position if necessary and/or re-enter if the trend takes off again. As I have already said it’s a strategy. I am a first grade C student of Oscript, still in kindergarten with Olanguage. I “THINK” that if a strat can return a buy/sell signal, string, value, etc. it could be set to control strat/port/account settings. Guys, if you think I’m full of it here, tell me. I’m used to it. I can take it really, I’m married. No worries! Afterthought: GMMA2 is available to all OTU members through the All Access Pass and several customers already own it. I’ve used it for years to position trade. |