Do you need to trade more when you have a positive expectancy?

Discussion in 'Trading' started by ElectricSavant, Sep 29, 2018.

  1. MarkBrown

    MarkBrown

    i traded 30 yr bond futures for decades with a model that was optimized for chop. it had a stop and reverse on the rare event the market would trend a little. so if your going to trade chop focus on it very well and you can do ok.

    there are guys who trade nothing but chop.
     
    #31     Oct 1, 2018
    themickey likes this.
  2. It was sort of meant to be, but someone could argue that what I mentioned actually works. It's all a shot in the dark, with no definitive points. This is why applied math is so important.
     
    #32     Oct 1, 2018
  3. Sorry dude, disagree on all points.
     
    #33     Oct 1, 2018
  4. Ok then, so tell us where to short at resistance (daily high/292.93) on today's SPY movement, and also why we shouldn't buy there, statistically speaking.
     
    #34     Oct 1, 2018
  5. Sorry again. Education costs
     
    #35     Oct 1, 2018
  6. Expectation (often called expectancy) is rarely known due to non stationary nature of markets other than in some special cases. First step to success is to understand this. Here is a quote from an article:

    <<In the case of trading strategies, we can never be sure we have a sufficient sample and in many cases we do not. Therefore, in general we do not know the mean of the distribution. >>

    The quote is #7 in this article. This is a useful blog to follow. .
     
    #36     Oct 2, 2018
    S-Trader likes this.