ET at night is like the back ward when all the minority attendants have gone up front to blow dope: You leave your cell at your own risk.
I am only hanging around because I have been in a fucking underwater NQ short for over an hour. I figure if I keep drinking and ignoring reality price is eventually bound to go my way.
Chapter 1 con't... "The unnamable is the eternally real. Naming is the origin of all particular things. Free from desire, you realize the mystery. Caught in desire, you see only the manifestations." The truth pervades everything. If you label the truth as A, then it is not B. Fragmentation of the mind leads to dualistic visions (bull/bear market). Dualistic visions lead to hope and fear. Hope and fear promote fixations and perspective is lost. A trader should not fixated on a single trade in which the success is a function of luck. He should keep perspective on how his edge is doing over time (many trades) which should be more of a function of probability/statistics. If the edge is not quantifiable, it will be hard to tell when it is sick and when it is healthy.... Hope and fear are only naturally triggered by the unknown.
Do I smell a Lao-Tzu companion to the book "Sun-Tzu: The Art of War Applied to Trading" a-brewing? If what's-his-name could spin a book out of nothing, so can you.
Assuming the P/L distribution of trades are normally distributed (bell curve), a sample size of at least 30 is a general rule of thumb for estimating population mean and variance etc.
I am less interested in babbling by myself... Hoping for open discussions and exchanges of ideas. BTW, Larry W. Phillips had already written a great book "The Tao of Poker."
Chapter 1 cont... Yet mystery and manifestations arise from the same source. This source is called darkness. Darkness within darkness. The gateway to all understanding. Although you can't see anything in "darkness"... being empty of characteristics... darkness also includes everything... leaves all possibilities to the imagination. As described in Buddhism, the awareness (wisdom) and the projection (concepts) of the mind coemerge like ocean and its waves. You cannot abandon one and favor another. A meditator trying to suppress thoughts is making a futile effort. He should embrace everything and resolve their nature. In trading, it is only natural for both profit and loss to occur. They are equally valid results from a statistical run. As long as the drawdowns are within reasons, we should not accept one and abandon another. Monte Carlos simulation (randomizes the historical trade sequences to get many sets of results as a population for statistical testing) and confidence level testing can give some ideas for the drawdown. ~~ End of Chapter 1 ~~
Chapter 2 When people see some things as beautiful, other things become ugly. When people see some things as good, other things become bad. Being and non-being create each other. Difficult and easy support each other. Long and short define each other. High and low depend on each other. Before and after follow each other. Not being in touch with the nature of mind, we clings onto our dualistic visions as real permanent independent entities... constantly overestimating and underestimating... We see good/bad, friends/enemies, gods/demons, and profit/loss then experience pleasure/pain and hope/fear. In Buddhism, they are the "relative" truth due to fixations.