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Wow, so some crank friend of yours demands to be paid in "wealth" and that suddenly becomes the normative standard for terminology in discussing labor markets? Good grief, you really do live in your own head vs. reality. Your analysis of opportunity cost is pretty superficial and the rest of...

Wow, you really miss the forest for the trees, eh? While the money/wealth distinction is useful in general, in the context of this debate (salaries for individuals competing in the job market) it's pretty useless. Do you hear anyone ever asking their employer to pay them in "wealth" not "money"...

How so? I think there are vendors who border on being con artists who push mass psychology as part of their "products" (any vendor selling 'Elliott Wave' related-materials would likely fall into this category), but I have built my own strategy on the assumption that the market is a manifestation...

I could have easily said "wealth" instead of "money" in the employment example. As an employee of a company, I have a claim on some of the wealth it creates, typically in the form of money (yes, money's value fluctuates, but presumably my claim of the proportion of my employer's monetary cash...

Your objection 1 is only true IF the other 9 applicants are able to get another job which pays equal to the one I got over them. If they are forced to take a job for less money than the one I got pays, they have absolutely had to pay (there are also other costs like the time and effort to apply...

How is this any different from the fact that if I get a job and 9 other people who applied don't, 90% of the applicants lost? It happens all the time, obviously. That's just life. I don't see why you would single out trading as an activity where this was somehow more egregious than in any...

Definitely the intellectual challenge of figuring out the market puzzle. All of you guys who are so worried about "social value" should just automate your strategies and then go do charity work during trading hours, if you're so bent out of shape by how you make your money. No one is stopping...

Anytime I sense the potential to get whipsawed, it's tough to enter because I absolutely hate getting whipsawed.

I agree. The time to think about your strategy and its signals is after-hours, not during.

Says the guy touting his 1-month returns in his sig.

You make some very good points. I definitely don't view winning percentage in itself as an important characteristic and agree that a strategy has to have a high winner to loser size ratio as well. I guess I'm not sure why a strategy would have to have a low(er) winning percentage in order to...

Not only is the trader with a 30% success ratio more dependent on a single winning trade, he's also less able to determine the moment at which his 30%-win rate trade strategy has gone off the rails. You can easily have long stretches of losers with a 30% win rate which seem like nothing out of...

Why would you not trade as many contracts as you can so long as your VaR at your maximum loss point is less than the optimal percentage bet based on the historical performance of your strategy? So if you have a $100K account and weren't strictly day-trading, you would trade ~17 contracts, or 1...

Just think of an elephant eating an orange.

Hey, thanks for the reply, but I didn't mean to imply I thought there was an arbitrage play here. I agree that if there was one, it would be for someone with some kind of lightning-fast set-up to take advantage of it, not for someone who's a solo trader.

Because I need the nearly 24/7 access to maximize the potential of my strategy, I'm going with the ES using stop limit orders, based on what the ES "should" trade through when the SPY reaches a certain point. The amount I lose with the wider spread ultimately is worth less to me than the ability...

I guess I'm implicitly assuming that I'm getting a good value on average, so long as my winning trade percentage is higher than my losing trade percentage. If the underlying moves against my directional preference, I got a bad value for renting gamma, but if if moves in my direction, I got a...

All things considered, the Holy Grail might just be the ability to withstand drawdowns. Why? Well, in my own case, I have a strategy which could have taken $10K to over $2.9T over the past two years, using Kelly style position-sizing, if I were willing to withstand 90%+ drawdowns from the...

I was not clear that I'm not looking for gamma to go up, just to have some positive impact so that the synthetic 500 SPY shares/1 ES contract is more profitable over the same price range on winning trades and less unprofitable on losing trades than an actual ES contract, where none of the greeks...

True, but in this situation, I think the relevant comparison is the gamma for a high-delta option vs. the complete lack of gamma in the ES. You might be on to something in that I should compare the lower delta strike prices to the higher delta strikes to see which is the best way to construct...