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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (62694)4/4/2002 12:40:58 PM
From: Return to Sender  Respond to of 70976
 
OT: We should do it both ways. Percentage is certainly more important but when trading large positions like AD does it increases the amount of money he can make or lose on a small swing.

Both methodologies are important to determining how effective any trade or trading system can actually can be.

RtS



To: Gottfried who wrote (62694)4/4/2002 2:03:49 PM
From: Robert O  Read Replies (2) | Respond to of 70976
 
ot

I have misgivings about posting dollar amounts too... but only when posting a loss.

But seriously, I think actual dollar figures are important to understand the trade and yet I very much understand anyone's trepidation on that point. Perhaps those people can start with a random base of 'units' so we have a sense of size of bankroll brought to trading, then post unit/% of trades versus that base.

Call the base 100,000 units for all 'unit' traders on the thread and each can make the adjustment in their head. For example trader one may know their real dollars are 40,000 so ratio is 2.5 units/1 real $, but irrelevant to us. At least if the trader posts units up or down and keeps a tally we will know what percentage of the base is left at any point in time. So this method is better than just saying 'I lost 12% on a trade Monday' as we would not know what remains of bankroll since we don't know if what percent of trader's dollars were lost at 12% hit. ALternatively, one could post two percentages each day: % up/down for day and % of initial bankroll intact (125% would indicate a plus position). But I think it's easier to just say remaining units are 85,000.

RO