| | | Weds at 10:30 has been developing quite a tendency to be "happy Hour" for those fuzzy brown bears shorting WTIC...... quick 4% price plummet.
absolute global over supply issues in the crude are is what Barry Burns has been telling me lately.
let's see if a some signals develop.... I have pruned back my risk profile by reducing my exposure... in the PM's and the currencies.
as per our conversation on May 30th regarding the 2% stop loss on any position
Message 31127493
I did not have time to finish a couple of additional refinements to implementing the 2% per position rule....
your response later in the day, .....
siliconinvestor.com
A few additional thoughts.:
In looking at Value at risk and determining position size, because it's possible to have events that create market gaps and thin liquidity... Hite had also used the Average true range of the past 20 days to determine, the volatility of the market and that was used in the formula for how big the position should be, the Turtle trader PDF has a sophisticated approach for calculating what size your position should be given the account equity. And Account equity can be further broken into subsets that can really vary
Michael Burke..... really great guy in Houston who came over to our office in Greenway plaza and spent most of the afternoon helping a few of us deconstruct and examine the parameters and elements that went into this very elaborate trading system my boss Bjorn had great interest in.
Michael, who I visited over in the Transco / Williams / name has now changed again tower in the Galleria.... when he was with Smith Barney....... had his 90/10 approach where he was putting 90% of his clients accounts in a conservative laddered bond approach, which worked out well as the bond market was in a magnificent bull market, increasing in price and paying yield on top of that. ( Hence the Knighty Tin alias) on Silicon Investor when he changed from his name.
And he took the final 10% and was very aggressive with it.
I've seen several other well thought out account equity VAR Value at Risk structures.
One of the other great insights that Larry Hite mentioned and used at Blackrock and other shops is that when 20 day ATR gets to volatile when compared to Several periods of Historical Volatility, they then cease to trade that market as it has become unstable.
People trading the Cryptocurrencies including Bitcoin and Ethereum... and the small ocean of of CC's that have developed would be well served by taking these concepts into consideration......
the Cryptocurrencies are truly the wild west of 2017..... Ethereum was at $8.5 at the start of Jan 2017 and was at 250 yesterday...
Rounding to 8 : 8 to 16 to 32 to 64 to 128 to 256. ---- that is significant appreciation in 5 months.
------------------------------------------------------------------------------------
I had to refresh my mind on how the GFC in 2008-09 ...... created a restructuring and merger with Morgan Stanley.
Morgan Stanley Wealth Management is an American multinational financial services corporation specializing in retail brokerage. It is the wealth & asset management division of Morgan Stanley. On January 13, 2009, Morgan Stanley and Citigroup announced that Citigroup would sell 51% of Smith Barney to Morgan Stanley, creating Morgan Stanley Smith Barney, which was formerly a division of Citi Global Wealth Management. The combined brokerage house has 17,649 financial advisors and manages $2 trillion in client assets. [1] Clients range from individual investors to small- and mid-sized businesses, as well as large corporations, non-profit organizations and family foundations.
On September 25, 2012, Morgan Stanley announced that its U.S. wealth management business was renamed "Morgan Stanley Wealth Management." The broker-dealer designation for Morgan Stanley Wealth Management will remain "Morgan Stanley Smith Barney LLC." [2]
and Solomon brothers was bought by Smith Barney and then put together with Travelers group by Sandy Weill in the late 1990's.
And Citi still has a significant equity stake in Morgan Stanley Wealth Management.
JP |
|
