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In your testing...
Posted: Sun May 11, 2008 9:38 am
by LeviF
If you get a signal to buy 2 instruments, but can only take 1 for whatever reason, do you find it more profitable to buy: 1) the stronger of the two (based on some recent performance measure); 2) the weaker of the two; or 3) half position in both?
Re: In your testing...
Posted: Sun May 11, 2008 5:18 pm
by Mathemagician
levijean wrote:If you get a signal to buy 2 instruments, but can only take 1 for whatever reason, do you find it more profitable to buy: 1) the stronger of the two (based on some recent performance measure); 2) the weaker of the two; or 3) half position in both?
Doesn't option 3 kind of negate the dilemma?
M
Posted: Sun May 11, 2008 11:57 pm
by TrendsCatcher
In the long run, (1) is the way to go, especially if the two instruments are from the same sector, eg, crude oil vs heating oil