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When you say simulation, do you mean there is software out there that does this? If so, what is it called? Thanks.

GMST, Sorry, totally missed the sarcasm. I know there are a lot of strong opinions about Jack on ET, but that is typically the case for most active posters. It is funny that you mention developing a methodology and posting it because I did come up with one, although I didn't post it...

Thanks, GMST. I already make money consistently so that is not a concern for me, but I am always interested in gathering "nuggets of knowledge" when I find them. I appreciate you calling attention to the importance of what Jack is saying because I was just debating whether or not to invest the...

Jack, thank you for the detailed response. It raised a few questions: You wrote: "You can easily get the correct answer by doing a running tabulation that gives you the market's "capacity" (its coping ability) at ant particular time." Once the "capacity" is determined, how does one...

Investopedia defines Scalability as: "A characteristic of a system, model or function that describes its capability to cope and perform under an increased or expanding workload. A system that scales well will be able to maintain or even increase its level of performance or efficiency when...

When looking at Theta, remember that it decays exponentially increasing substantially as expiration approaches. Also selling puts is a very effective strategy if three steps are implemented: 1. The options are sold on something you want to own, 2. The capital is set aside to purchase the...

I am looking for a hedge fund custodial service and was wondering if anyone would be willing to recommend one? Also, what are the typical fee structures associated with such a service? Thanks.

Over the past year I have posted my experiences of starting a hedge fund on this thread. I have tried to be as open and honest as possible both in my intentions and in my mistakes. More often than not, this effort has resulted in attacks on my integrity, trading experience and ability, even my...

What does this mean?

Hilarious! Maybe if it doesn't work out with the hedge fund I can run for public office...:D Its always nice to have options! (and equities)

I am glad that the point about solicitation of funds through ET was brought up because it is obviously an important issue and one that is integral to growing a hedgefund. Thank you to all who have taken the time to post their thoughts on the matter. Hopefully, we can make a greater effort to...

So another quarter has come and gone and I am pleasantly surprised and pleased to let all of you know that the fund is not only still in operation, but also prospering. Investors are happy (for now) and I have learned many new things since my last post that I will share with you now. Many...

I thought the same thing before beginning my analysis. What the results indicated to me, however, was that due to what I believe is the difference in the magnitude of compounding upon the timing of the cashflows, drawdown and return did not increase/decrease equally. For example, at current...

Very good points! Its funny you mentioned this because I have been performing an analysis of increased leverage and found that 2x leverage is optimal in balancing the drawdown with returns. I am in the process now of increasing my position sizing as opportunities permit. Thanks to all who...

There are statistics that argue that financial markets spend about 15% of their time going up, 15% going down and the remaining 70% of the time going sideways. If this is true, then statistically speaking, a directional bet is going to be wrong approximately 85% of the time. Personally, I find...

Originally, I was going to go with a rate similar to one you suggested. However, I went with the higher rate as a conservative estimate and this is one of the issues that has caused my internal debate...I suppose it is always best to accurately reflect current conditions as much as possible...

I went back on forth on which rate to use. What would you suggest?

Hello. Below, I have run through the calculations of the Sharpe ratio based on my monthly returns. The value is very low and I would welcome any constructive guidance on if my math is correct and if so, what are the major contributing factors for the low value. For example, I trade with...

I used to be a prop trader with Bright. I asked if I could use some kind of real time market simulation (something like NinjaTrader) so that I could practice trading and learn to be consistently profitable without losing cash and then eventually migrate to real cash with 100 share lots and...

"Time Decay - Definition of Time Decay on Investopedia - The ratio of the change in an option's price to the decrease in time to expiration." What I was referring to was that the casinos are able to convert the passage of time to work in their favor as a ratio of change in the statistical...