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Good point, b. I agree with you entirely. That's a rational way to
set up your money management strategy (among many).
Al
--- In amibroker@xxxx, "b519b" <b519b@xxxx> wrote:
> Al,
>
> Your example illustrates Van Tharpe's Position Sizing very well. A
> 3.3% stop loss ($30 to $29) would let one "risk" $30,000 of a
> $100,000 portfolio. I follow the logic, but in real life I would
not
> put that much into a single stock -- due to the risk of a big gap
> down. I realize the purpose of your post was to show that position
> sizing does not require small positions in a multitude of stocks.
I
> agree with that.
>
> But in addition to the 1% or 2% limit on a single trade, I also
add
> a 10% rule: no more than 10% in a single stock no matter how good
> the reward/risk ratio looks or how big a position the 1% rule
allows.
>
> b
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