Optimal F Software
Manufacturer: Murray Ruggiero
- Customer Reviews (0)
Optimal F is a statistical method that helps calculate optimal money management techniques when traders have an "edge" over the market. It was used by Larry Williams during the Robbins' World Cup exploits in 1987. Entirely open-source and fully disclosed, you can take a look at Optimal F to learn more about market conditions. Note that we are not big fans of using Optimal-F in trading. It can cause you to go broke quickly. The theory is predicated on a normally distributed outcome of wins and losses. Trading is well known for its leptokurtic distribution. That means it has long tails. These tails are problematic for Optimal-F computations. However, with that said, it can be used to compare systems because the higher the f values the better the system. You should also look at f over time, large changes in optimal f, means that the underlying statistical distribution of trades are changes which would be a warning sign that market conditions are changing. Therefore, you can think of Optimal F as a basic sanity check for the market conditions to ensure that they are continuing to be stable. This can be very useful when you are running a TradeStation system and you want to have a general indication if the market conditions have changed and you might want to consider turning off the system temporarily, or if the market conditions are the same and you should leave the system running. The code is fully disclosed and open-source. It is a great example of accessing trade statistics and using arrays in TradeStation.
Be the first to write a review.
Submitting Your Review, Please Wait
Add a review for Optimal F Software
You must include a title, rating, and message in your review.
Your Review Title