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It is a legitimate worry but better to think of it this way. What course of action, when using this strategy within its window of opportunity, allows you to transfer the maximum ammount of dollars from the market into your bank account. At their core, many profitable trading strategies feed...

You need to adjust nominal values by the debasement of the unit of account. Otherwise one could be fooled into praising Zimbabwe's economic policies.

Who said QE did not work. It pumped up the asset side of the banks balance sheets, and enabled painless deficit spending by politicians. That your living expenses go up, well we don't count that in the CPI.

MSFT transitioned from a fast grower to a cash cow. During this transition the stock is in no man's land, growing too slow for a growth manager and being too expensive for a value manager.

Would be nice if that were so. You are ignoring the fact that half goes to taxes, and business and living expenses eat a good portion of the rest.

The basket of goods defining the relevant rate of inflation is different for different people. The Shadowstats inflation is typical for an average Joe's expenses. In that sense your graph is more of a standard of living graph for the working stiff. Sure, if your basket of expenses is...

Good luck Maverick. Makes sense to run stock/ETF strategies in addition to your futures/options strategies. Does that mean that the 6.6 leverage you get into a protfolio margin account is not enough for what you want to do?

Never is a strong word. http://blog.mises.org/6491/zimbabwe-best-performing-stock-market-in-2007/

Assessing a charge on cancels will not cure the fact that you, as retail, are last in line to get filled. Any changes to the market structure will be implemented so that the regulators do not have to explain to Congress why another flash crash happened, and not for the benefit of the six...

without warranties

I would say it is the red queen effect. It takes all the running you can do to stay in the same place. The longevity of an edge seems to be proportional to the size of the barrier of entry to it. To stay at the top you need to either be among the first to uncover and exploit new edges as...

Ghost, I think you need more than just the win rate to get a handle on the distribution of drawdowns. That's because most drawdowns are made up of several alternating loosing and winning streaks. Some rules of thumb for the expected maximum drawdown: - if you have a positive expectation...

Splitting legs between brokers definitely makes it difficult for someone to understand what you are doing. However, I do not have enough capital where it's worth splitting the legs. Having all positions in one place saves me money on margin financing and allows higher overall leverage, and...

To revisit this old thread, I find that information that previously used to take hours to days to get fully priced in now gets priced in in a matter of minutes to hours. The reason for this is likely due to some changes I see in the way the information gets disseminated. I suppose it is...

Thanks for the reply. Your experience confirms my own. I have not traded prop, but I have traded in an investment bank, a hedge fund and on my own. In an investment bank, to get ahead, you need to be skilled at politics. You get larger risk allocations and make more money if you are a...

Winston, is there any way to keep control and make money from a systematic trading strategy short of trading your own account, or setting up your own investment advisor ?

If your profitable, you take another trader's money. If you tell the other traders how you are going to take their money, you will find it hard to do so afterwards. Either because your mark fixed his game, or because a faster trader beat you to the mark.

one google hit

Be careful if you go to play there. The recent Pipeline experience should be an eye opener. As they say, you are not paranoid if it's true.

And don't forget that even if you increase your capital by 10% nominal you may still not come out ahead given the money printing binge around. Beating the fake CPI is no good you need to stay ahead of the true inflation.