Recent content by Tremaine

This was the first question that came to mind after reading VT. First of all, your argument is logically flawed: The fact that people don't do it does not mean that it doesn't work (you are using a negative premise). You could of course argue that it is common sense, and not even worth...

I don't understand what you mean. Please clarify.

I don't quite follow. If (and only if) you can make consistent profits scalping with random entry using a simple technique for exits such as VT's stop, then everybody should be able to do it? It's hardly rocket science.

Are you actively developing automated trading systems? My guess would be no. Quants need to do a lot more than just enter trades. And what do you think the guys who develop these quants use as benchmarks to figure out if what they are doing is actually effective? If you are a pro software...

You apprently didn't read all of the previous post on this thread, so I'll say it again: I do not think that using random entry is a very good idea, and I have no plans of doing it. But if it is possible to make profits consistemtly this way, it does put things in perspective. Why, for...

Just to be clear: VT would flip the coin everytime he took a new position. At any given time he would (most likely) have both long and short positions.

Intersting point of view :)

Thanks Lights. This seems to support the view that random entry can be used for small profits (and hence may be a reasonable strategy for scalpers). Anyone else?

Not that I'm in any way an expert on the subject, but what do market neutral strategies have to do with random entry? All market neutral strategies that I know of rely on prediction.

Thanks Bolter. Has anyone achieved similar results?

Nobody is saying that using random entry is a good idea. The challenge is obviously to beat random entry when you design this part of your system. On the other hand: If making consistent profits (however small) with random entry is possible in certain markets, and if many people trade...

Yes. One position in each market at a time.

Thanks! It didn't turn up when I made the search. The funny thing is: Van Tharps son seems to get the last word on this thread claiming that the system works consistently on some markets.

What do you mean that by that? That his books appeal to losers or that following his advice will make you one?

I tried searching for the topic on ET but couldn't find anything. Btw, Tharp is not suggesting that you actually trade using this system. He simply uses it to demonstrate one of the major poits of his book: That entry is one of the least important components of a trading system.