The Trading Game

by Ryan Jones

Book Overview

Nahezu jede Woche ver?ffentlichen Experten neue Ratschl?ge, wie man am Aktienmarkt garantiert gewinnt - wann man welche Aktien, Wertpapiere und Optionen kaufen, halten oder verkaufen sollte. Mancher Tip funktioniert in der Praxis, die meisten versagen, und alle gelten nur f?r einen kurzen Zeitraum. Um langfristig Gewinne zu erzielen, gibt es nur einen Weg: Kapital- und Risikomanagement. Alles, was fortgeschrittene Investoren und Makler dar?ber wissen...

• Format: Hardcover
• Language: English
• ISBN: 0471316989
• ISBN13: 9780471316985
• Release Date: April 1999
• Publisher: Wiley
• Length: 256 Pages
• Weight: 1.15 lbs.
• Dimensions: 1.0" x 6.3" x 9.3"

Customer Reviews

compulsory book

This book contains virtually all information on money management methods. And more. And though the tables are at times tiring, overall presentation is clear, short and no-nonsense. The author presents existing methods of position sizing and then presents his, Fixed Ratio. I think that for small trading accounts this method is the most suitable in terms of the balance of risk and reward. Other parts of the book are equally good. The chapters on consecutive wins/losses, optimisation, trading systems, portfolios are valuable and interesting. The whole book is written from probabilistic point of view. It is based on maths, even though the examples and calculations are very basic. Even if one disagrees with author's ideas, this book is one of those few that are compulsory for serious traders.

This is a phenomenal book

I have been trading,reading, and writing about futures for 11 years. In my journey I was recommended Ryan Jones's book. In his book he details the various methods of money management, then he exposes their flaws, and finally he presents you with his solution for money management. This is a great book for any student that is serious about his success with futures. Ryan has a friendly approachable style to his writing that engrosses you, even though the information is laden down with statistics and mathematics.It is a nice eye opener to really see how important money management is and how it can work for those that are dedicated and disciplined.Purchasing this book ... will definitely help you keep more money in your pockets.

Why you need this book

While the book quite exhaustively covers every popular method of money management, it's main focus is on the "Fixed Ratio" method. Since the author of the book is the creator of this method, his material is the only reliable source from which it can be learned. Proper money management will make you a millionaire much faster than any one system will - and that is what this book teaches. The balance between the ability to grow your money geometrically and maintain a comfortable risk level is what makes Fixed Ratio so superior to methods lile fixed fractional and Optimal f. For the price of the book, more valuable information cannot be had. (and you get a pretty robust system to boot!)

Excellent Book On Money Management Applied to Trading

Limited number of books on Money Management. This is destined to become a classic. Does an excellent job of surveying other money management approaches (Optimal "f", Secure "f", Martingale, Anti-Martingale, etc.) before plugging his favorite: Fixed Ratio. His arguments are persuasive. Jones does an excellent job distinguishing between money management and risk management. He does an excellent job of addressing and often dismissing irrelevant factors that often confuse the money management discussion. An example - Risk Of Ruin: Jones writes: "Basically my reaction is 'who cares!' Risk of ruin has absolutely zero practical application in trading."A couple "wishes" -- Jones favors "simulation" runs to evaluate different money management approaches presented as spreadsheet print outs. I think with a little work, some of these examples could have been made a little clearer, and a little more interesting (i.e. display graphically?). But perhaps that is a good exercise for the reader?Another "wish": provide more information on available software -- except maybe it isn't available?? Jones mentions, only briefly, but at least twice, a software program he developed that appears to help one utilize the Fixed Ratio trading method. There is no more information on this, no web site, no nothing?? I've heard of people "over-hyping" their products, but Jones goes to the opposite extreme and barely mentions it??!! This might be helpful to those of us interested in pursuing his methods further.All in all, an EXCELLENT book!!

One of the most important trading books ever!

If I had to recommend one book to read on trading, this would have to be it. While it does not cover every aspect of trading, it is the only book I have read that can actually deliver what the title implies. The author discusses all of the popular methods of money management in use by private and professional traders alike. There are times when the detailed and exhaustive examples can make the most enthusiastic reader bleary eyed. However, this is done for the benefit of the reader. The author is convinced that his method of money management is superior to traditional methods and takes pains to prove this with a comprehensive and step by step analysis of each. Additionally, he describes and gives the rules to a simple trading system that actually works better than most of the high-priced systems for sales in popular trading magazines. I have personnally back tested the system oulined in the book using his "Fixed Ratio" money management approach using TradeStation 2000i. I optimized the system parameters to a small degree to reflect them as a function of the respective markets in which it was being tested but still attempting to avoid curve-fitted results (i.e. the moving-average parameters in the SF may have been 24 and 5 days as opposed to them being 21 and 3 days in bond futures). I used this method with a stop-loss (also being a function of the market) in the following markets: TQ, SF, ED, ES and DX. I chose these markets for their relatively low margin requirements. Tested over the past four years yielded approximately $1,400,000. The author claims that if one has a system that generates at least $20,000 per year, that that amount can be parlayed into $1,000,000 in five years. Judging from the results from my own tests, this book delivers that and then some. What is interesting about Fixed Ratio money management is that it is independent of the system being used. You can add any number of systems and any number of markets and as long as the systems all generate a profit, the results just keep getting better and better. This is the result of allowing your equity to grow geometrically, with only a modest increase in your risk. You actually stand to increase your return by several hundred percent while you increase your risk by a few meager percentage points. If you are prepared psychologically to trade futures, equities or options then I urge you to purchase this book. Otherwise, get yourself mentally ready to trade by reading "The Disciplined Trader," by Mark Douglas (books by Ari Kiev and Van K. Tharp are also good) then return to this book/subject. It is revolutionary.