Hi, I’ve been reading Van Tharp’s Books and recently I decided to put together a marble set from his books. now if you have read these books, you would know that this game is about the parameters of Risk / Reward and position sizing.
Van talks about position sizing and Risk multiples as the one of the MOST important parts of trading. More so then Entry is your Exit strategies. as the Adage goes "Cut your Losses and Let your Winners run.
the Idea of this game is that we have a marble bag. it is a custom set of colours, each colour represents a different Ratio or Multiple. eg Black is -1R (loss) Blue is +1R green is +2R and so on. (R Multiples are equal to your SL size. so 1R loss is your SL and 1R profit is the same value).
Now this marble bag represents a trading system that has an Expectancy of 0.52R per trade. (Expectancy being how much your system will make per trade on average regardless of your next outcome).
now to play the game i would draw random marbles from this bag. all players have the exact same string of “Trades” or multiples of wins and losses. the one thing that players have control over is the Risk amount per trade.
this game is about learning how different strategies to risk management and Multiples of Risk will make the difference between a losing system and a winning system.
What i’m going to be doing is organizing a regular night to allow people to join me in playing the marble game.
Pls let me know via reply who would be interested in playing. i am currently looking for a good webinar program that is free. pls let me know if you have any ideas on this also. I will post again probably in a few days to let people know when i will be going ahead.
Can you post the details of your marble bag (how many total, and how many of each color), and the R values for each? I want to do this demo for my investment club to show them how important position sizing is to the average investor.