I'm afraid you've entirely missed the point if this is how you feel. Maybe someone will be kind enough to generate some buy/sell signals based on...
Also read a very interesting study of stops and exits by Dr. Koch. Many of the conclusions drawn are worth exploring. One of the results of...
From wikipedia: "The average absolute deviation from the mean is less than or equal to the standard deviation. One way of proving that relies on...
Kind of an old subject but I thought I'd touch up on it. We've often heard the idea that a system can be profitable even though its number of...
Thanks for sharing that bit, Captain. Sometimes we can get so consumed in what we're doing or the final goal that we forget much of it is about...
No. To answer your question, I was using returns on a system that generates daily signals. Daily returns would imply that I took the average...
Deglazenbol and MGJ, thanks for the pointers. I will definitely have a look at these. I've found a nice white-paper on Pareto-Levy distribution...
Thanks for the input, Steve. I've discussed a similar strategy to what you are implying with a fellow regarding out of the money options; the...
Welcome back, $Cost. Nice kills.
In running Monte-Carlo simulations, I've noticed that <a href="http://en.wikipedia.org/wiki/Fat_tail">fat-tails</a> often occur, on 10,000 trade...
I think at the relative institutional level he's used to playing, 30MM is peanuts. To compare, It's like blowing out a 500k account and then...
Thanks, bl82. As someone relatively green at this, this is the path I've chosen after doing much of my own floundering about and experimenting...
EDIT: Instead of trying to test on a generic 'x years/months/days', I would suggest testing on conditions and environments. Obviously the length...
http://elitetrader.com/vb/showthread.php?s=&threadid=74757 :eek:
This thread is classic. :D :eek:
I'm afraid those who think Edge is discipline or any type of psychology, including being "honest" with yourself, risk or money management,...
Tongue in cheek or not, I've found Acrary's threads most helpful in my own progress. While at first I did not completely appreciate or understand...
Thus emphasizing the necessity of proper edge testing over time. Once your edge starts to degrade, it is time to move on to a new one. This is...
Add-in: Notice how u can still have positive expectacy - ie make money, even though you may not have an edge, if market conditions prove...
Also simplified as: (Average win size * %tage wins) - (Average loss size * %tage loss) Money management and risk management have to do with...
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