OmniVest User Forums
Risk Control Requests (& other Account Settings)
Realistic risk control
1 replies, 805 viewings
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OmniVest User Forums
Risk Control Requests (& other Account Settings)
Realistic risk control
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Last Activity 5/17/2016 11:06 AM 1 replies, 805 viewings |
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Lawrence New User Posts: 4 Joined: 10/11/2012 Location: San Pablo, CA 94806  User Profile |
Fixed dollar amount is good for smaller accounts. A trade needs to be large enough to generate a profit AFTER EXPENSES in real accounts, and fixed dollar trades is the easiest way to do this. Performance data using fixed dollar trades would also not skew results in favor of when the account is larger and thus generating larger trades that the small investor or trader does not use. Margin costs do add up. Average % profit per trade can held determine the minimum trade size to be profitable for real life trades using that strategy, portfolio, or account. Performance DOES depend upon expenses - not including expenses until total profit is determined and then subtracting out the expenses maximizes APPARENT profit and DECEIVES the user into thinking a setup is profitable when it might not be for his account. It is inaccurate to say that all trades occurred without expense and then subtract out expenses only from the final total. This gives incorrect results (especially when the account is smaller), but I believe this is the procedure used to determine performance. Not considering expenses as they occur INVALIDATES ALL STATISTICS AND RESULTS. [Edited by Lawrence on 7/31/2013 8:51 AM] |
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