How much edge is enough edge?

Discussion in 'Automated Trading' started by garchbrooks, Feb 13, 2010.

  1. Dolan is correct. See this paper for the math details.
     
    #11     Feb 14, 2010
  2. Wow haha... I laugh when I see people displace their anger on others... Making money is rather simple in the market. Here is what you do:

    1. use any form of information/analysis at your disposal to create a trading plan. whether it is MACD or the commitment of traders report I don't care.
    2. back test your strategy on years of data

    I use (it's free):
    http://finance.yahoo.com/charts?s=^GSPC

    And:
    http://www.timingcharts.com/index.php

    3. if your strategy will win more then it will lose, then you will make money given you risk the same % of your capital on every trade.
    4. get a broker and send some money to the broker.
    5. trade your plan and never deviate from it.

    Only 5 steps. Have a nice day.
     
    #12     Feb 14, 2010