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You have something that tells you what will happen? Damn, that sounds pretty sweet. Ben Bernanke might like to have a word with you. Not saying that I would trade this way, but take that "triangle" formation as an example. Yes, you would go long the "breakout" with a stop at the low point of...

I'm sure the guy has $1000/hour tax attorneys and accountants on retainer advising him. If they concluded that this is the best option, I highly doubt anyone here is going to come up with a legitimate rebuttal to that conclusion.

BTW, weren't you the same stupid f-ck who didn't know the difference between a bond and an annuity the other day? Jesus, you really do fall into the "stay silent and be thought a fool, rather than speak and remove all doubt" segment of the population, don't you? I hope your gift to your...

I was talking about his income tax already paid. Assuming he's been taking an income of over $130K/year in his position at Facebook, he's already paid for what he's consumed. Are you prepared to say that he's been taking a salary of less than $130K? And, for your information, I have an MBA...

I notice you didn't answer the man's question about whether you'd do the same thing, you just blathered about what you think this other guy should do, according to what you think is best in the abstract. Hundreds of millions of people share the infrastructure in the US. 1% of them make it...

I agree that these are the benefits, I'm just not sure that for an individual who is already successful, the cost of searching for partners is low enough to justify the benefits. For some, yes, but I would think those who would benefit at a higher level than the costs incurred would be those who...

You might try this paper for some answers http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1678758

I think that this is ultimately what a lot of hedge funds end up being, isn't it? A core group that comes together, each with a different approach, then grows its headcount as conditions warrant. Not all of them, obviously. But, I think that more importantly, independent traders who are...

And the profit factor stayed about the same during each of these periods or was contained within a relatively narrow band?

Funny you mention that because I looked back at the dates marking these two distinct periods and there was definitely a shift in the way the VIX acted at that time and the relative decrease in frequency was accompanied by a falling VIX. This is for ES trades. On the other hand, I have been...

I get minute-by-minute data on other futures from CQG and the data includes volume, so I would think that provided they actually can supply you with the VIX futures data, which they probably can, it would include volume. Of course, they are just one of many providers, but I have had no...

On a snapshot view, yes, this would define a profitable system. Considering the system lifecycle, though, would a system shutting itself off indefinitely be common? Seems like most of the systems you read about end up eventually in a state where they give signals, but the signals stop working...

That's the thread I was thinking about when I posted this one. As I thought about it, I wondered if it was possible that there is some set of systems which don't need "switches" to detect market changes in an external manner because the inner workings of the systems' designs are themselves...

Yes, I was wondering more about "unintended consequences" of specific design choices in the system, which may or may not be covered by backtesting. In my case, I thought I had a system which gave about 1 signal every 2.1 days, but over the past 4 months, that signal frequency is way down to one...

Is it possible to create a system which will turn itself off, i.e. stop giving trade signals, when those signals are more likely to fail, without any intervention on your part or any attempt to use an external filter to detect market shifts? How would you even know if the feature was...

I think it's a terminology thing and that the word "function" wasn't appropriate there because it has another meaning which doesn't align with what I was asking. What I meant is whether or not that poster thought that the cessation of the strategy's ability to capture profits was a reflection of...

Is the lack of long-term signal a function of the parameters chosen? I know that without knowing them, it's difficult to say, but is this generally true?

What's funny about this assertion is that most Finance professors tend to teach the efficient market hypothesis (I know that's what I was taught in my Finance courses), so they will tell you not to become a trader at all. That's for the most part, although there is a minority of Finance...

Think of your ideal trade in terms of how long it would last, how frequently you'd like to trade, etc. and then determine how you would go about designing something to make that happen, if it's possible. There are very few "one size fits all" approaches to the markets. Your main objective is to...

I agree that some price action is just not tradeable and could therefore be called "noise", but there are trading models that take into account every tick and for those models nothing, or almost nothing, is "noise". For example, if you have a time-based trading model, every minute of market...