Mathematics of Money Management

Have anyone read "Mathematics of Money Management" by Ralph Vince?
Did you use any of his ideas in your trading? How does it compare to fixed percentage model in the long run?

I'm asking because I have a hard time going through it and wondering if this is something that I REALLY need to understand to take my trading to the next level.

Thanks in advance for your inputs

I read it. All he does is to talk how to calculate optimal f. Optimal f is the percentage you should trade on a system to get the most out of it. So optimal f is the same as fix percentage MM. I wouldn’t recommend to trade optimal f. First because the DD are too big and second because you need a lot of statistical data to make an accurate calculation of the optimal f. If you miscalculated by even 1% over the real optimal f then say bye to your account.

To me the best way of determine your percentage per trade is do a backtest and find out historical DD based on different percentages. Then you select the percentage which resulted on a DD that you feel comfortable with. Also remember that the worst drawdown is still to happen. So always apply some conservatism to your results.

FXOne