Showing posts with label risk management. Show all posts
Showing posts with label risk management. Show all posts

Monday, 3 December 2007

Anti-martingale

In my last post I mention "Martingale" staking systems (dodgy, dodgy, dodgy!), well I found the definition for an anti-martingale staking system in wikipedia:

"One activity where money management based on an anti-martingale approach has a recognized value [1] is speculation and trading. Many financial markets have some cyclical component to them, and the approach of an individual speculator or trader may only be appropriate for one portion of that cycle. Using an anti-martingale risk management scheme will increase profits during time periods when a trading approach is working well, while automatically decreasing exposure during portions of the cycle where trading is unprofitable. This is believed to decrease the risk of ruin for trading"


Van. K. Tharp, the financial trading guru, talks about anti-martingale systems in his investing rules. Have a look here: Van K. Tharps rules