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If you can make 2-pts avg per day per contract <b>consistently</b> week-to-week or even month-to-month you'll be rich. The smaller your equity volatility the more you can risk per trade. Risk-adjusted return is everything b/c with with a more consistent system you can risk more per trade...

I never scale in or out. The only reason I would consider doing so would be psychological reasons. Too many traders scale not realizing that they are in effect utilizing different systems. If you buy on a breakout... then scale in some more on a pull back... then you are trading two separate...

For any EOD system where you test SPX, if your system enters or exits anywhere but the close, you will have better results than reproducible in real life. Why? Because the open that shows on SPX from most data vendors is not representative of related trading vehicles (ES, SPY) because most...

Traderkay, Try this experiment. Take whatever measure of random vs. non-random price behavior you want, such as Hurst exponent as basic starting point. Say you trade on 15m or 30m bars. Now go to a lower time frame to measure if data is random or not, say 1m or better tick data where...

axeman, The key to doing the types of random data testing you are thinking about is to do lots of them. You need a significant sample size to draw any useful conclusions. Many traders pick a preferred method of trading (breakout, trend following, momentum, contrarian, scalp, whatever) and...

Depends on what methodology you are using. Assuming the underlying meets minimum threshold of liquidity, many traders have done very well just trading currencies looking only at price. Using random charts can indeed be useful to test methodologies that require a distinctly non-random...

The short answer is "it depends". It varies from stock to stock and also depends on the sample size being measured. All instruments (stock, futures, indexes, etc.) go though different periods whey express behavior that varies from true random (as measured by Brownian motion) to degrees of not...

Look up Brownian motion and the drunkard's walk algorithm. Been done many times before. You can apply formulas from non-linear dynamics to accurately detect the degree of randomness in your data.

You left one thing out of your equation... When you hit your stoploss point at 26.35, you will lose $, period. You won't make $ due to theta decrease. You will lose less money than holding only stock, but you will lose money. It will cost you more than zero to buy back your call. Whatever...

Backtest everything, even techniques with degrees of subjectivity can benefit from backtesting. Some momentum was started over at Wealth-Lab on gartley setups: http://www.wealth-lab.com/cgi-bin/WealthLab.DLL/topic?id=5067

Or www.godaddy.com

Every strategy I've tested that looks at SPX instead of the underlying futures (or ETF) recorded better results with SPX that would not have been possible due to inherent lag in SPX vs. futures and other misc. issues such as how most data vendors report the overnight Globex activity as part of...

Since Hitman's name came up, I'd like to announce that in addition to Don's Opening Order strategy and his usual discretionary trading, Hitman has decided to add systems trading to his arsenal!! He is currently deciding on Wealth-Lab vs. Tradestation and will soon be joining the ranks of the...

This is my final post on this thread and you may have the last word. I'm sorry, but i believe it is you who does not get it. You never, ever know what you don't know. In other words, you don't know what vulnerabilities currently exist. A firewall does not address "Day Zero" attacks. You have...

If you look at the magnitude of the problem in terms of service delivery vs. dollars at risk, the CME/Globex has one of the worst track records of all online systems. Imagine if the backend systems to ATM's (banks, not networks) or credit card systems had the same frequency of problems that...

They are two different products that do different things, albeit with some similarities. I have used both extensively, and have no allegiance to either. I will use the best tool(s) available. Just like in trading, show me something better than what I am using, or why my current toolset is...

Yes, the admins had months to patch their systems, yet how many systems were infected? Looks like relying on patching of systems wasn't so effective, was it? In fact, the WindowsUpdate is so effective that Microsoft released URLscan and IISlockdown tools, a form of IDS. You prove my...

I disagree with this. What happens between the time you patch your system and another vulnerability is discovered? I used Code Red and Slapper worm as an example of widely known vulnerabilities that infected many, many systems quickly before administrators had a chance to patch their systems...

This is how most firewalls work, including BID and almost every personal firewall available on the market. The packets are dropped, so response sent, so it looks "invisible" to the client.

Because you may have open ports that your firewall allows through, such as port 80 and 443 for a web server. How effective was ZoneAlarm when Code Red and Slapper worm did massive infections to many, many web servers? BID blocked them clean, even without the updated database signatures. It...