Traders' Roundtable

Hello,

My problem was what the meaning is of '1 unit'. I searched the internet and found that the capitalisation per contract equals
largest observed loss/(-f)

Then, the number of contracts equals
account balance/capitalisation per contract

For example, if the largest observed loss equals ...

Hello,

By dividing de biggest loss by the negative f, one obtains the dollar amount to invest. This means that one should buy 1 unit for the dollar amount. This says Vince. But how to choose 1 unit? Isn't there any rule to choose it?

I don't also understand the word 'drawdown' ? I am a Dutch ...

Hello,

Vince say that you have to calculate optimal f's for different strategies (market systems) en then use the geometric mean (which follows from the f) to compare the strategies to see which strategie performs best. Why can't you just compare the returns of some stocks for the strategies? Why ...