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Money Risk Management software for Metastock users, JBL Risk Manager
PhantomTrade
post Posted: Nov 13 2006, 11:04 AM
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Posts: 8


In reply to: grahame11 on Sunday 12/11/06 06:06pm

Hi Mark,
As explained sometime ago by Chris Tate:
Use a 5 ATR for short term trading and X 3 below high
Use a 8 ATR for medium term trading and X 2 below high
Use a 14 ATR for long term trading and X 1.3 - 1.5 below high

As I understand it and have used for many years successfully

Regarding the limitation of only 30 trades per spreadsheet.
As I understand it, it takes less than a minute to replicate another spreadsheet to allow for another 30 trades. The program automatically calculates your average %loss & % gain $win & $loss ratios to determine your trading performance. It suits me to take a breather after 30 trades and see how I am performing. 30 trades seems like the right number, whether your day trading or investing.

I hope this helps graduated.gif

 
grahame11
post Posted: Nov 12 2006, 06:06 PM
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In reply to: PhantomTrade on Sunday 12/11/06 01:42pm

Hi Phantom

No probs.

I am intgrigued by 5 and 8 ATR. I use an ATR of 2.5 across all of my stocks with initial investment size defined by total invested divided by # of allowed stocks. Although this does produce some early exits it has kept me profitable and protected over my last 18 months of fulltime trading.

Pyramiding. I only pyramid up and use Louise Bedfords' techqnique.....initial entry....pyramid up by 50%....then by 25%.....then by 15%.....based on hitting 2xATR breakpoints. Again this technique for me has worked and it simply allows me to increase exposure in a position once I am convinced it is moving in the right direction.

I recall with amusement an initial entry in AUM (now CDU) pyramided twice in the first hour....twice the next day and then exited using another of my "rules" for highly speculative stocks. I allow a $500 "loss".... or a technical stop below the last close, whichever is the LEAST LOSS TO MY POSITION. It too has allowed me to ride volatile stocks...DYL over the last 2 weeks for example.

I guess the sum total of all of this is to have a risk management plan that works for you and stick to it.

good luck with your trading.

Best Regards

Mark

rolleyes.gif

 
PhantomTrade
post Posted: Nov 12 2006, 01:42 PM
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Posts: 8


Hi Traders,
I have since purchased from developers website http://www.paconsulting.net.au/index.php?p...bl-risk-manager and you are right, it's not really designed for day traders but medium term traders. The site has some cool stuff also regarding FOREX. But regarding who it suits? This is reflected in the ATR value of 8 he emphasizes. Short term day traders would use a 5 ATR and NOT 8 and a greater multiplier, but I assume you know that Mark graduated.gif but neglected to mention. I use Technical Analysis & Fundamental Analysis to get me in i.e. FA for financially healthy companies and Technicals when to get in BUT use Money Risk Management to get me out and not emotion. To me all shares either fit my buy rules or they do not. I do not pyramid up or down (sometimes called dollar cost averaging which many have written to be STUPID and generally only recommended by brokers.
I checked out STATOR and found it just like so many other books on the the subject...IF BUT THEN OTHERWISE BLAH BLAH BLAH. He keeps it simple: Never risk more than 2% of your trading Capital. Never trade with more than 20% of your trading capital in any one trade and just by having as many trades as you can does not mean success. He says never have all of your money in the market. Simple enough. JBL Risk Manager was only $99AUD and developed by someone who spent nearly 10 years guiding and lecturing to Australian traders and Investors not on the importance of Money Risk Management. It's been around since 2000 and I think it's excellent value. It even tells me what my win loss $ win $ loss ratios and a lot more, automatically. Just the way I like it.
p.s. What impressed me was his definition of Trading Capital. It's not how much you start with or have at the end of each month but what your current cash is plus the value of any open positions if stop loss is hit. In other words if you start with $25,000 and one of your shares has gone up $2,000 your trading Capital is not $27,000 but $25,000 + profit if stop loss is hit e.g. 1700. This takes care of taking advantage of compounding your true capital.
Anyway have referred to one other friend that loves it and many will tell you that you do not have to be a day trader to profit greatly from the markets.

Cheers

 
grahame11
post Posted: Nov 12 2006, 12:55 PM
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Hi there

I bought it and used it for about 3 months. Great product but as a day trader I found it became clogged given the number of trades I was making. HOWEVER did the job I needed and helped me develop my own.

I now use:

a). an Excel spreadsheet into which I key the daily ATR for stocks and it calculates stop loss, pyramid points etc.

b). Stator Professional which gives me risk management, performance, portfolio accounting, daily/weekly/monthly profit/loss, etc etc. FANTASTIC PRODUCT. Allows multiple portfolios, multiple currencies etc. There is a FREE RISK MANAGEMENT calculator on their downloads: http://www.stator-afm.com/downloads.html

Hope this helps.

Cheers

Mark

 
PhantomTrade
post Posted: Nov 1 2006, 11:06 AM
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Is anyone familiar with JBL Risk Manager? Found it at www.paritech.com.au/AU/products/software/jbl.asp

Apparently it's good for any software that has ATR (Average True Range) but particularly suited for Metastock users. graduated.gif Tried the other one called TradeRisk but found it only told me when I was in trouble too late and was too complicated. This JBL program actually calculates your trade size, stop loss and while trading your profit stop and much more. I have always been told the importance of Money & Risk Management but could never get my teeth around it or the books that try and explain make it more complicated. I need something that controls my emotions and this seems to be the one. Its $99 has anyone got one. Is there anything else out there that does what jbl does? My mate seems to rave about it.

 
 



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