Jim Dean Sage   Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA  User Profile | I know this has been a lot of info to digest. So, here is the main point I’m trying to make, using the examples previously provided … The KEY ISSUE in this allocation debate, *insofar* as it applies to testing and development A vs B vs C comparisons, hinges on COMPOUNDING. % Equity allocation naturally uses compounding. Fixed $ (either measured by per-trade Capital-commitment or by per-trade Risk-exposure) does not suffer from the potentially horribly-misleading decisions which compounding sets the stage for. Using popular lingo, I would classify results and decision making from Compounded allocation while testing A vs B as “Fake News”. This is true for stocks, futures, forex, options, mutual funds, bitcoin, Texas hold’em, and Ponzi schemes. It’s just basic math and scientific method. [Edited by Jim Dean on 8/31/2018 6:37 AM] | |
