I think we need a bit of a distraction, but a distraction that’s extremely important in the current context.
I’ve displayed how I manage trades and risk (you can find the relevant steps in the Macrodesiac Discord under risk management, and also in the introductory email sent out when you joined)…
But I want to get you guys thinking about other ways in which you can build a good trade & risk management process.
I’m going to fire 12 articles, PDFs and papers at you to have a blast through in good time.
They’re pretty damn important and hopefully you learn something from em.
Here we go.
- Bet Sizing Article by Ed Seykota and David Druz
- Gibbons Burke Article on Money Management (PDF)
- Seykota Risk Management Resource
- Kelly Formula and Data Transmission
- White Paper by Johan Ginyard (PDF)
- Johan Ginyard Position Sizing Interview
- Frequency v. Magnitude White Paper
- Web Resource for Math, Black Jack, Kelly, etc.
- Edward O. Thorp: Beat the Dealer (PDF)
- Kelly’s Original paper, March 21, 1956 (PDF)
- The Sharpe Ratio
- Tutorial Risk-adjusted Return
I’ll add these to the Discord as well, but take a read through them all and send me back your thoughts.
I’m crap with maths so I interpret some of the concepts in a more discretionary way which works for me…
But some of you geniuses are likely to get a better grasp of them than me – so perhaps you can teach me something.