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Jeff said:
So the question is, if Tharp knows what he's doing and Mobely is his protege, then why does Mobely need to scam people to make a buck? Why can't he just use his alleged knowledge of the market and invest the money legally.

Yes I heard about that, When it comes to money and wealth some people just don't have enough. But the fact D. Mobely had troubles with justice doesn't mean Mr Tharp's book or ideas are wrong. In fact Mobely just wrote the intro. Tom Basso helped Tharp a lot more at developing this book.

Regarding the percent volatility strategy, in the book
Tharp says it was tested using some software called Athena. Athena, actually, seems to be a commercial software tool.

This kind of position size, at least in theory, it makes a lot of sense.
Let's say you have $10.000 and want to invest in two positions. One position has an average daily volatility of $10 per position and the other one has $1. If you invest equal dollar amounts you're gonna have one position with big profits( or losses) and the other one with almost no movement ( assuming no volatility change happens).

I you invest with some kind of volatility driven positioning you're going to equate both investments and your bets will have a kind of equal behavior. You could, even, decide which CGAR you wanted ( and which maximum drawdawn you're likely to admit)

FSC


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