Positive Expectancy System

Discussion in 'Risk Management' started by Irishman, Apr 2, 2002.

  1. Irishman


    Hi Traders,

    I have just joined this site today.It is a lot better than some others that I have visited.Glad to see that David S Nassar is a contributor.

    I am at the stage ( after 1.5 years ) of having progressed from Dumb Money No.1 candidate to starting my journey to full time EDAT trading.I have set Jan 2003 as start date for active daytrading.

    I currently trade using Datek Direct ( $9.99 commission ) and have just recently opened an account with IB to avail of their 1 cent commission rate.The reason for choosing IB is that I want to come up with a Positive Expectancy System ( or systems ) so that when I take that big step into the serious arena I will have my trading plans back tested and know exactly what type of Risk / Reward ratio my systems will produce.I fully understand that the trading plans will occasionally have to be modified - as is standard procedure for reviewing business/trading plan.

    What I think would be very beneficial to myself,and other progressing traders,is if some of our professional members could enlighten us as to what approach has worked best for them - with major emphasis being placed on generated results from backtesting various strategies in relation to Risk/Reward ratio and Positive Expectancy.We fully understand that every Individual is different and must come up with their own comfort level and expectations,but access to some general knowledge from people who have gone through the process would be a very advantageous.

    Hopefully this will turn into an educational discussion that will benefit all members who want to become fulltime professional EDAT traders - with the ultimate goal being to eventually get to the level of the top 5% percenters.Why not !

    Good Trading All.

  2. There are a number of threads on this already.

    Go to www.elitetrader.com and search for the things you are interested in.

    PS - I am glad to see David S Nassar here, too.