Reality based coin-tosser method that beats 95% of traders in the world.

Discussion in 'Strategy Building' started by Whisky, Oct 16, 2009.

  1. Whisky

    Whisky

    You don't see gravity either. Jump out the window and feel its effects. Make it a second floor of a building at most, otherwise you may kill yourself.
     
    #301     Oct 20, 2009
  2. AyeYo

    AyeYo

    Explain it. What law of nature says it HAS to even out? The heads/tails of a fair coin will eventually even out. Where's the statistical rule that says your given win/loss AMOUNTS have to also even out?

    I can toss a coin to predict whether the sun will rise tomorrow. The toss results will even out, does that automatically mean I'm going to be right 50% of the time?
     
    #302     Oct 20, 2009
  3. AyeYo, piece of advice. When something smells like bs and needs to be obfuscated in non-nonsensical gibberish, it usually is.

    You're thinking correctly to begin with. Don't dilute your proper understanding by heeding the siren calls of the mad.
     
    #303     Oct 20, 2009
  4. Whisky

    Whisky

    It doesn't have to even out. Over a large number of samples the expectation converges to a loss equal to commissions and slippage. If you don't understand the mathematical proof, I can suggest you make a Montecarlo test and see it converge in front of your eyes.

    Every outcome is 50-50 that's all the coin does. The payoff is positive or negative whatever amount. The expectation is 0. And then you substract commissions and slippage.

    Maybe someone else can explain it better?.
     
    #304     Oct 20, 2009
  5. Whisky

    Whisky

    You are a liar.

    You will have to prove to yourself and others that your suggestions bring in at least 1 tic per day on average extra profit over the original method rules.
     
    #305     Oct 20, 2009
  6. AyeYo

    AyeYo

    You don't seem to realize that you aren't playing roulette with a fixed $100 per spin. You're trading the ES without stops. Your win and loss amounts are NOT fixed. You could throw tails for a week straight in this market and blow your account to hell. What then?

    There's a massive difference between tossing coins with a fixed win/loss amount and having a 50/50 system with whoknowswhat worth of loss and gain with each toss.
     
    #306     Oct 20, 2009
  7. Whisky

    Whisky

    Everything you said in this post is correct.

    Yet what I said is correct as well.

    Paradoxical uh?

    You will have to prove to yourself and others that your suggestions bring in at least 1 tic per day on average extra profit over the original method rules.
     
    #307     Oct 20, 2009
  8. wutang

    wutang

    #308     Oct 20, 2009
  9. Whisky

    Whisky

    You could throw heads for a week straight in this market and blow your account to hell. What then?
     
    #309     Oct 20, 2009
  10. AyeYo

    AyeYo

    No. You prove break-even first.

    Look at a chart of the DOW since the 20's. If you had 50/50'd that you wouldn't have a pot to piss in, much less an internet connection to post on. I want to see proof of break-even first.

    Your logic works in the casino with a fixed win/loss. It doesn't work in a long biased market that has the ability to trend your 50/50 trading into submission.
     
    #310     Oct 20, 2009