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I'll do both tests for you, but it'll have to wait until the market closes (45 min.)

Here's a little spreadsheet that will help you understand the effect. In the A column is the size of win as % of the equity risked. You can see the size of win/loss effect. In columns B-E I put in different % risked of equity strategies and the corresponding equity portfolio values. This...

I couldn't find one online that was so straight forward. Here's one that has a good introduction to the Pareto-Levy distribution and the distribution of stock returns. http://bschool.huji.ac.il/segel/moshe-l/SF.pdf

The distribution of returns for stocks is not representative of a bell curve. It's more like a Pareto-Levy distribution with fat tails and a smaller middle. Random studies have been done where stops were set to the lowest 20% of the returns and found to be consistently profitable using random...

Sit tight -- this is a trend day. If you must, move the stop to under the 20 period MA on the 5 min. chart. Trend days usually bounce along the trend line all day. Should get a test now.

When did you net 90+ points on 1 intraday trade? The largest intraday range I could find was 75 pts. on 7/24/2002.

PKJR, the results look good. Only red flag I noticed was the winning and losing streak numbers are indicating dependency in the trades. If the winning % were 40%, then there should have been at least one occurrance of 10 losses in a row ((1-.4)^10)*253 = 1.52. The streaks are indicating a 54%...

droth, I don't use % based stops. I use 1/2% of account for risk per-trade. Ex. If I had a 100k account, then the max. risk per-trade would be $500. If I wanted to trade 5 emini contracts I could only risk 2 pts on each contract for each trade (500/(5*50)). I use it for my personal account...

Walther, I have a couple of daytrading systems that have been on the shelf awhile. I don't want to disclose the logic because I'm still using the underlying ideas. Here's another free system that trades using VIX and the Put/Call Ratio. I call it the Kung Fu System because it's desgned to...

I use 7 edges with each having it's own system. I'm not going to post them, but if you're looking for ideas.... Here's one I used in the SP futures market off of the put/call ratio. I haven't used it in years, so if you can use it or learn something from it...go for it. Putcall Rules...

I answered the poll, but I'm getting a bad vibe. Why would anybody care how much someone else has in their account? Is this stuff being mined to create a customized profile of each participant?

You're right. Positive expectancy was excluded. I was just trying to isolate the money management component. In a method with no postive or negative expectancy, the % of portfolio money management just adds another negative to overcome. E = (PW *SW) - (PL*SL) where E = expectancy PW =...

It's been known for years. The larger the % risked on each trade, the higher the negative expectancy the trader must overcome. I trade using 1/2% risk for my own account, but when I traded for the house we used a different method of sizing. Here's some detail on problems with the % risk...

I don't know if you'll have an out of body experience. I didn't...but then again I stopped going through the course when I became concerned. Here's what I PM'd another interested person so you can see where I'm coming from: I've tried tapes for self hypnosis (to lessen stress while trading)...

I started with first set of CD's in the Gateway Experience. Seemed interesting and I'd blown $100 on other dumb stuff. I'm an analytical guy and didn't expect much. It definately blew me away. Had sensations of weightlessness and wiped out all stress in my body. Also thought the first CD was too...

Might as well go to where the gov't. sent it's people for training: http://www.monroeinstitute.org/ I tried out the CD's and they do have an impact on your brain (audible halucinations, elimination of stress, incredibly vivid dreams, lost time while listening, and lots of other weird...

If you liked Market Wizards you'll love "The Big Hitters" by Kevin Koy. It came out before the Wizard stuff and has more trading related stuff than Schwager's. The interview process should look familiar to MW readers as well as some of the names (Richard Dennis and Tom Baldwin). Lots of good...

Money Management link: http://keplerweb.oeh.uni-linz.ac.at/trading/moneyMan.htm

Trade only when the edge is in my favor. Concentrate on good defense - think of taking a loss as playing for better position (stops and re-entry -- commissions are insignificant). Let the profits take care of themselves. Never calculate how much I'm up/down in a open position (way too tempting...

Here's today's detail on the trade. Am I getting screwed by the IB?