aphie, Thanx for starting this interesting discussion of MA. You got me thinking about MA's so I thought I'd write up my observations and post...
The ideas come from a couple of chapters from Tom DeMark's 1997 book: "New Market Timing Techniques: Innovative Studies in Market Rhythm &...
DeepHindsight's point about testing on random entries is good. You can go even further with it by synthesizing random price data and backtesting...
I'd like to amplify on Magna's point some more. One way to look at the situation is that a trader's mental or numerical model of future price...
All trading assumes that the tradable is "mispriced" -- why would a trader enter a position on a perfectly priced security? With vega trading,...
A market only needs liquidity if we assume that we must be able to execute market orders at every instant during the "trading" day (notice that...
Hey, now that makes two of us :) All of my postings presume that the reader is interested in thinking about trading from a more explicit,...
<b>Pareto-Levy distribution :</b> The Pareto-Levy distribution follows a rather complex formula that describes an entire family of distributions...
<b>RE: too many variables to find the deterministic motion:</b> I'm with darkhorse on this one. Although, I certainly do not believe that we can...
I too, would love a flat-tax system, but I fear that complexity is inevitable. If they tried to create a truly simplified tax code, people...
Actually, I do NOT think that prices are random. I think they are complex mix of stochastic and deterministic components. The challenge for...
YIKES!:eek: It sounds like you might be talking about what is called UBI, UBIT or UBTI (Unrelated Business Taxable Income). UBTI occurs when a...
I'm a stock trader, so you may be right about commodity traders. Just be careful as some of the Active Trader/Tech Analysis of Stocks &...
I think that most traders can avoid Social Security/FICA/Medicare Taxes if their "income" is based on cap gains, dividends, interest, etc. rather...
How come the old slogan got to be the first ballot entry? Worse, its getting unfair election advertising -- its being promoted in the window...
A few more unofficial ideas: Elite Trader: Buy, Sell, or get the hell out of the way! Elite Trader: Meet the faces that will rip your face...
Darkhorse, Excellent question about complexity vs. horsepower.:) This is my favorite type of question -- a question that I thought I had the...
I like darkhorse's dichotomy of mechanical vs. discretionary traders (I'm in the mechanical camp myself) -- every trader needs to find approach...
<b>Answer 1: Strong yes: </b> At first glance, it sure seems like these stocks have nonrandomly large numbers of downdays (compared to a naive...
You pose an excellent question! This question illustrates a major issue in trading and the power of screening to mislead traders (that you pose...
Separate names with a comma.