Traders' Roundtable

I am currently looking for a software which automatically creates patterns and checks for their profitability. Now I was informed of a software called Wave59 (https://www.wave59.com/) and that this piece can at least search for already defined patterns.

Well, they don't offer a free trial - you ...

AFJ Garner, I agree with you, but still the original question is the validity of a change to to the R-multiple calculation because of its shortcoming. I like the concept of R and have built trading models around it but...

"Wouldn't it be better to change the R-multiple calculation to take not only ...

Jason,

thank you for your thoughts. It should be clear for every serious trader how to handle ongoing open risk. The solution to convince customers to accept draw downs is not that easy. Consider a new customer who enters on a new equity high, which old customers have as open equity, and the open ...

I would like to discuss a potential pitfall of the R-multiple concept.

The problem is, that having the R-multiple as a "fitness function" (i.e. the bigger the better) you are considering the "markets money" (i.e. money you have made in a still open trade) different to "your money" (i.e. money you ...

Thank you Kevin for your thorough explanation.

Christian

I was always wondering, what the difference between 'Money Management' vs. 'Risk Control' is.

I don't see Money Management in the TradeStation sense as some type of stop loss scheme but as (in Tharp's definition) a form of 'Position Sizing', i.e. 'how much'.

But what is 'Risk Control'? Position ...