TheBramble
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With something approaching the mental equivalent of a 'Whack on the side of the Head', I realised yesterday that my position size and stoploss calculator has been using the above two coefficients. I'm sure I got them from t2w.
On searching the forums the only matches I came up with was my post asking about them and a reference to a chatroom. (Chatrooms really aren't such a good idea for the transmission of information. The audience is random and the decay rate of the info is exponential).
The thing is, the way I have these 2 coefficients coded, there is a direct relationship between the stock price and the risk:reward. (The lower the stock price - the lower the reward to risk).
As I have been trading stocks are roughly the same price, this hasn't ever 'stood out' before, but as I am now looking at a much wider spectrum of stock prices, the apparent anomaly became obvious.
Either I've got this codified incorrectly or the use of these coefficients is protecting me from something I don't think exists for me anymore.
The other reason I'm reviewing my current stoploss strategy is that I've (only just!) realised the stoploss has got nothing to do with the stock price...doh.
However, for interest's sake - I'd appreciate knowing if anyone else uses these coeffs and how they apply them to their trading position size and stoploss calcs.
On searching the forums the only matches I came up with was my post asking about them and a reference to a chatroom. (Chatrooms really aren't such a good idea for the transmission of information. The audience is random and the decay rate of the info is exponential).
The thing is, the way I have these 2 coefficients coded, there is a direct relationship between the stock price and the risk:reward. (The lower the stock price - the lower the reward to risk).
As I have been trading stocks are roughly the same price, this hasn't ever 'stood out' before, but as I am now looking at a much wider spectrum of stock prices, the apparent anomaly became obvious.
Either I've got this codified incorrectly or the use of these coefficients is protecting me from something I don't think exists for me anymore.
The other reason I'm reviewing my current stoploss strategy is that I've (only just!) realised the stoploss has got nothing to do with the stock price...doh.
However, for interest's sake - I'd appreciate knowing if anyone else uses these coeffs and how they apply them to their trading position size and stoploss calcs.
