Looking for a book

[pavilion103]

Howard, I ordered your book. It arrived this week.

I've been very busy but I'm very excited to get stuck into it shortly.

 

[howardbandy]

Hi Pavilion, and all --

Thanks for your support.

When you have a chance, visit my blog at
http://www.blueowlpress.com/WordPress/

There is a lot of free information, including articles discussing various aspects of trading system design, testing, validation, and analysis.

You can register for free (anonymously if you wish), post comments about the material, and ask questions. I plan to write more articles about topics that readers feel are important.

Among the points I emphasize is that while position sizing is very important, it cannot be done without:
1. Careful analysis of the distribution of trading results to determine profit potential and risk. Using scalar values, such as mean, standard deviation, and largest loss is insufficient.
2. Comparing the risk of a drawdown of some amount with the trader's personal tolerance for risk.
3. Monitoring the ongoing health of the system, adjusting position size as needed.

The correct position size for a system that is broken is zero.

Thanks,
Howard