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main methods comparison

Posted: Mon Nov 15, 2004 5:11 am
by smodato
Hi guys, I read time ago an article of Murray Ruggiero Jr where he was comparing optimal f Vs fixed ratio.
I understand fixed ratio is one of the most common systems and I personally like it very much.
To compare it with optimal f is not very realistic and I would compare it to fixed fraction method with a small percentage of risk.
What about other methods? I read fixed ratio does not work best when payout ratio is not much bigger than 1 even in case of high accuracy.
Are there studies to suggest what method suits a system based on the data of the strategy report?
Thanks, bye
Smodato

Posted: Mon Nov 15, 2004 9:21 am
by stancramer
The good news is, there are some wonderful tools available to help you with your research and they don't cost a lot of money. Among the dozens on the market, that you can find using a search engine like Google, are ProSizer ($39) and Market System Analyzer ($149).

Programs like these will let you try out Fixed Ratio and Fixed Fractional and other approaches, to see with your own eyes just how they perform on the exact trading system(s) that you care about.

Elsewhere on this Trader's Roundtable forum (use "Search") you can find damian's study of Fixed Ratio using Behold! software ($1000). I also believe that AmiBroker ($300) and Trading Recipes ($2700) will let you test dozens of positionsizing methods including the ones you're interested in. Good luck with your testing! Let us know how it all worked out.

Links --
http://www.adaptrade.com/possizing.htm
http://unicorn.us.com/trading/prosizerdoc.html