Comments on: Why R? http://www.tradersnarrative.com/why-r-155.html Freshly squeezed market commentary & analysis Mon, 01 Dec 2008 21:01:36 +0000 http://wordpress.org/?v=2.0.2 by: How to Fail As a Trader in 10 Easy Steps http://www.tradersnarrative.com/why-r-155.html#comment-6401 Thu, 10 May 2007 20:23:58 +0000 http://www.tradersnarrative.com/why-r-155.html#comment-6401 [...] 3 Compare yourself to other traders, not yourself Don’t use R or any of that weird stuff like MFE/MAE. Instead compare yourself to other traders using dollar amounts. [...] […] 3 Compare yourself to other traders, not yourself Don’t use R or any of that weird stuff like MFE/MAE. Instead compare yourself to other traders using dollar amounts. […]

]]> by: ‘Way Of The Turtle’ by Curtis Faith - Book Review at Trader’s Narrative http://www.tradersnarrative.com/why-r-155.html#comment-5065 Mon, 02 Apr 2007 23:22:56 +0000 http://www.tradersnarrative.com/why-r-155.html#comment-5065 [...] I found it reaffirming to find Curtis talking about the concept of R so matter of factly - which is a tribute to Tharp since ‘R’ has become an integral part of trading culture within only a few years after its introduction. But more interesting was Curtis’ introduction of a similar concept he calls ‘E’ or ‘E-ratio’. This refers to the effectiveness of entry into a trade, just as R refers to the result of a trade - measured by unit of risk. [...] […] I found it reaffirming to find Curtis talking about the concept of R so matter of factly - which is a tribute to Tharp since ‘R’ has become an integral part of trading culture within only a few years after its introduction. But more interesting was Curtis’ introduction of a similar concept he calls ‘E’ or ‘E-ratio’. This refers to the effectiveness of entry into a trade, just as R refers to the result of a trade - measured by unit of risk. […]

]]> by: Expansion Follows Contraction - ESCL at Trader’s Narrative http://www.tradersnarrative.com/why-r-155.html#comment-24 Mon, 15 May 2006 22:18:36 +0000 http://www.tradersnarrative.com/why-r-155.html#comment-24 [...] Risk is the most important element in trading. By watching for expansion and contraction, we can pinpoint potential entries that allow for risk to be clearly defined. [...] […] Risk is the most important element in trading. By watching for expansion and contraction, we can pinpoint potential entries that allow for risk to be clearly defined. […]

]]> by: Wilson Ma http://www.tradersnarrative.com/why-r-155.html#comment-20 Sat, 13 May 2006 01:37:27 +0000 http://www.tradersnarrative.com/why-r-155.html#comment-20 Dr. Alexander Elder also mentioned this in his writings. Another part of this "R" stuff would be exposure. I think exposure matters more than R because it incorporates _aggregate_ R. IE You can have 2% R per trade and Max Exposure of 6%, meaning 3 positoins maxed out at 2% etc... or you can have 1.5% R per trade and have 4 positions maxed out at 1.5%... I've found this helpful because sometimes I find my portfolio overconcentrated.. so I'm leaning toward reducing initial R but maintaining exposure (or aggregate R's), that way it allows for smaller size per position, but maintaining the same amount of risk -- just spread over more positions. Ya dig? Dr. Alexander Elder also mentioned this in his writings. Another part of this “R” stuff would be exposure. I think exposure matters more than R because it incorporates _aggregate_ R. IE You can have 2% R per trade and Max Exposure of 6%, meaning 3 positoins maxed out at 2% etc… or you can have 1.5% R per trade and have 4 positions maxed out at 1.5%… I’ve found this helpful because sometimes I find my portfolio overconcentrated.. so I’m leaning toward reducing initial R but maintaining exposure (or aggregate R’s), that way it allows for smaller size per position, but maintaining the same amount of risk — just spread over more positions.

Ya dig?

]]> by: Trader Eyal » Blog Archive » Several interesting posts http://www.tradersnarrative.com/why-r-155.html#comment-19 Sat, 13 May 2006 00:15:07 +0000 http://www.tradersnarrative.com/why-r-155.html#comment-19 [...] Sharky on To R Or Not To R Trader’s Narrative on Why R? Stocktickr Commentary on R [...] […] Sharky on To R Or Not To R Trader’s Narrative on Why R? Stocktickr Commentary on R […]

]]> by: Dave http://www.tradersnarrative.com/why-r-155.html#comment-18 Fri, 12 May 2006 18:37:43 +0000 http://www.tradersnarrative.com/why-r-155.html#comment-18 Great post on R. Risk is everything! Being able to handle it is critical. Great post on R. Risk is everything! Being able to handle it is critical.

]]> by: Eyal http://www.tradersnarrative.com/why-r-155.html#comment-17 Fri, 12 May 2006 15:13:31 +0000 http://www.tradersnarrative.com/why-r-155.html#comment-17 Great post. I like the way you defined the responsibility of a trader in terms of risk. I know that as a newbie to trading I had a hard time understanding what risk in trading really meant. Thanks for the links as well :) Eyal Great post. I like the way you defined the responsibility of a trader in terms of risk. I know that as a newbie to trading I had a hard time understanding what risk in trading really meant.

Thanks for the links as well :)

Eyal

]]> by: John http://www.tradersnarrative.com/why-r-155.html#comment-16 Fri, 12 May 2006 11:35:15 +0000 http://www.tradersnarrative.com/why-r-155.html#comment-16 That is the best explanation I have heard yet. Thanks. That is the best explanation I have heard yet.

Thanks.

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