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OH NO! You're giving away the supersecret exit strategy of winning traders. :) Brings new meaning to "let your profits run", doesn't it. :eek:

:cool: A SHINY GOLD STAR! COOL! -- "I'd like to thank gnome and all the people at ET for making this award possible. Without your thought-provoking discussions, I would be just another lonely keyboard-bound trader.":D Do I use y=mx+b? Hmmmm.... I guess I do at that. I suppose y=mx+b could...

Not sure if your question about y=mx+b (the equation for a line from 7th grade algebra) is facetious or not. Personally, if I'm in a predictive frame of mind, I prefer to write it as: Y[t+1] = C0 + SUM(Ci*Xi[t]) + Epsilon[t+1] <b>RE: "less is more"</b> Hmmmm..... I wonder if this a...

No, I'm not a mathematician, but I play one on these forums. :D If y=mx+b works for you, then that is great. In my own twisted way, I am trying to keep it simple (and my entry and exit rules are moronically simple). It's just that I find that simple questions (Which stocks should I trade...

<b>daniel_m,</b> I'm sure you are right the boomer echo and immigration -- its not like I've put all my capital into 2020 puts.:) I'm just saying there will be a large shift in capital from equities into fixed income (a drop in the % of household wealth in equities). And then there is...

<b>RE: alain and the Zero-Sum Game:</b> I like alain's analysis of the zero-sum nature of the markets - either superior timing or superior selection is the key to beating the index. Of course, a topic of another thread might be whether the average return on equities couldn't be negative for a...

aphie, Excellent points! <b>The Traveling Salesman Problem</b> is another really good example of the gulf between theory and practice. In THEORY, this optimization problem becomes exponentially harder as the number of sites grows. In PRACTICE, programmers keep coming up with clever ways...

Math can prove NOTHING about the real world without first scientifically proving the assumptions and axioms that underlie the mathematical model. This is the great weakness of math. The weakness of mathematical logic is best illustrated with the 2300 year saga of Euclid's fifth postulate...

chasinfla, You are totally right about the role of traders as MMs and specialists with second-class standing. I know that some could classify my trading style as that of an MM with an extremely wide spread.:) I wonder if any traders here are active & profitable as pseudo-MMs for...

Two reasons that we need MMs and specialists: <b>Reason 1: Market Orders</b> If everyone only used limit orders or some form of price-definite market clearing mechanism (e.g. one of the many forms of auctions), then we would not need special parties to provide liquidity or to ensure a fair...

zentrader, Thanx for sharing. Just to make sure I understand you. It sounds like discretionary "logic" is a post-filter on your mechanical trading system. The mechanical system provides a tentative entry signal, and the discretionary part makes a go/wait/no-go decision. Do you always...

WDGann, I'm intrigued by your hybrid system and wonder what parts of it are mechanical and what parts are discretionary. Do you use intuition to tweak the parameters of a mechanical system? Or does the mechanical system provide overall trading recommendations that you use discretion to...

I wonder if "Pride goeth before destruction" is an example of two types of biased perception. First, I suspect a visibility bias -- prideful people make themselves more visible and that makes their falls more noticeable. Would anyone notice if the invisible "millionaire next door" blew up...

Any chance of a "Kudos" button to go with that "Kicks" button?? Some posters, postings, and threads deserve positive feedback too. I'd even bet that some of the more interesting and valuable posters on ET will get both "Kicks" and "Kudos." So, I hope we can balance the positive and negative...

(some of these have been mentioned already) <b>PROs of System Trading:</b> 1. I'm not tied to the markets all day -- get the data, crunch the numbers, submit the orders and get on with life (I can even trade while on the road). 2. I have plenty of time to work on tweaking the current...

aphie, Excellent post! Self-limiting comfort zones are the bane of trading. I'd bet the history of blown-up trading wizards is littered with traders that got comfortable, got cocky, and got fried. And, you are right that traders that try to overrule what the market is saying are bound...

Hmmmm... what if we could change the game of golf to be more like trading???? <b>The new rules of NYSE golf:</b> 1. The course consists of 3000 different holes - players get to pick which hole(s) they want to play 2. Each player has at least one pair of balls, a "buy" ball and a...

<b>What do you like to do, Gordon Gekko???</b> I really liked your list of all the dimensions and alternatives in trading -- there sure are a bunch of techniques and many are mutually contradictory. But so much of this comes down to finding something that suits your personal style. For...

Interesting! But is there NO counterstrategy or means by which other traders can exploit the attempted manipulation on triple witching day???? That, to me, defines the difference between ordinary market dynamics and nefarious manipulation. If there is a foreseeable, detectable, tradable...

I am not so worried about gross price manipulation. Gross price manipulation is very risky because it depends on the initial scarcity of counterparties to get the price moving in the right direction. Then the scheme depends on a later abundance of counterparties to absorb the unloading by the...