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Grinding it out and getting consistent. Once you are truly consistent, you can increase your sizing very slowly and gradually. I've seen traders go from one-lot futures traders to hundred lot futures traders in 18 months. And their risk-to-capitalization ratios remained relatively constant...

Ummm.... the simple fact of the matter is that small traders who manually point-and-click using a mouse cursor and order ticket DOM windows with the strategy for capturing single tic increments out of the market are going to lose to HFTs whether they use stops or not. Stops really don't have...

Maybe another thought would be to go through your daily statements, build a spreadsheet or whip out a legal tablet, and do the math for yourself. It's your own trading system after all and I'm sure that you trade differently than alot of other ET Members you are querying. How would your P&L...

I think your old post answered your own question a very long time ago. Since you agreed with Keynes, a simple extension of that logic dictates that it would make no sense to increase size during drawdowns. I would personally recommend that after two successive losing days in a row, that...

Great question. Any smart securities attorneys want to chime in ?

You are making complete sense, but trying to reason logically regarding the troll EMG is a waste of effort.

Well, "small investors" being day traders trying to flip the market for a tic - sure the HFTs are going to bleed them. Naturally. And they are trading small accounts and can't take any heat. They trade for a tic and then puke when a position goes against them ten tics. So what - that's been...

The problem with this strategy of adding to losers or increasing size during drawdowns is that the same trader, from what I have seen at least during my own career, doesn't add to winning positions or winning streaks with the same zeal and leverage.

Don't repeat mistakes. Don't assume that your personal discretion and your intellect is smarter than the price print you see on the screen. You don't have to out-think or outwhit markets to make a very good living at it. Usually the killer for most traders is the five inches between...

Invest a modest amount in a charting platform using delayed data. Do lots of research and testing, build at least a dozen different trading systems, and paper trade them. Track your daily drawdowns - most important metric for you to consider. I think that just starting to trade without a really...

I have a client who just went live 3 months ago with a $10K account at Advantage Futures and he's doing very well swing trading futures spreads. They are very, very cheap to margin and carry overnight. Having said that, he is an experienced OTC energy trader who trained with me off-hours in...

(“He is his own worst enemy,” Nassim Taleb, the author and derivatives trader, says of Niederhoffer. “One of the most brilliant men I have ever met, and he wastes his time selling options—something nobody can have any skill in—and it leaves him vulnerable to blowing up.”)

I was just curious as to how monitoring the NOB spread gives the trader an edge in terms of trading the US T-Bond outright ?

For the past two years, CL and NG have a daily close-on-close correlation of - 7%. The twenty year correlation is +73.4%. So, I would disagree with the premise of your statement and the true relationship between NG and CL. There isn't one any more quite honestly. As a side note, you should...

All technical studies lag, because you are sampling an on-the-run pool of fixed data points that are historical. Nobody has a crystal ball that doesn't lag. Even data miners with neural net packages. Even live tic T&S data feeding into MatLab or S-Plus. If you need to predict the future with...

I would suggest that your propensity for cross country spreading might be the first place for careful reflection. I personally wouldn't... The correlations are very inconsistent and tend to break down dramatically and without warning. The Notionale versus the Bund used to be a great trade 15...

I wonder how an overlapped chart plotting CME/Nymex/CBOT seat prices and the CME stock price would look... Their Q1 revenues were down, and they are looking for the OTC Swaps market for salvation. And that has been traditionally where the ICE made it's bones. Typically traders buy seats...

I find that technical studies are usually not applied correctly. John Bollinger himself will tell you that it is the price action near the edges of the bands that tells you to buy or sell. Just fading every band edge is naturally going to get painful. And JB never intended the indicator to be...

I was just verifying that hopefully you are being a bit facetious and tweaking him, which is of course richly deserved. The OP's thread starter post in March of 2012 is proclaiming the Barron's cover call of 15,000 a contrarian indicator ( he's heavily bearish ). And as I recall in many...

I think another great topic to discuss is position sizing increases. I am personally fond of a system where you reward yourself for putting together a consistent string of positive days with a very modest bump up in sizing. You reward consistency. Make $10 or make $10K - if you are net...