Post Tagged with: "System money management"

Equity Curve Money Management

December 28, 2015 5:00 am6 comments

Amongst a wide variety of money management methods that have evolved over the years, a perennial favorite is the use of the equity curve to guide position sizing. The most common version of this technique is to add to the existing position (whether long or short) depending on the relationship between the current value of the account equity (realized + unrealized PL) and its moving average. According to whether you believe that the equity curve is momentum driven, or mean reverting, you will add to your existing position when the equity move above (or, on the case of mean-reverting, below) the long term moving average. In this article I want to discuss a  slightly different version of equity curve money […]

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