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OOOF! Welcome to another of the little bugaboos that plague trading. I too run into discrepancies between different data sources (for end-of-day data on stocks, in my case). Most of the problems are uncorrected misprints (spikes in the high or low due to faulty/rolled-back trades). I also...

Yes, and its a very pretty, but somewhat dangerous cat.:) Of course, anyone used to playing with markets, should be comfortable with playing with fire. I wonder if some others will say that they see an empty can and a whole mess'o worms ;) Get well soon, -Traden4Alpha

I suspect that the "unique view of the market" concept is treasonous to some types of traders (and that is why they rabidly oppose it). If everyone uses different bar lengths and bar phases (the start-times of bars), then it would lessen the herding or flocking behavior that some types of...

Interesting concept. Seems like it would depend on one's core approach to the markets. 1) IF one seeks patterns that nobody else knows about, then nonstandard definitions of the bar duration (or bar cycle time, bar periodicity) and bar phasing (the subinterval start time of each bar) might...

OK, a few more: About Elite Trader: Elite Trader - "Where people live for trading & trade for a living" Elite Trader - "Where bulls and bears go to see and be seen" Elite Trader - "We long to go short and will shortly go long" Elite Trader - "A liquid market for volatile ideas"...

More for the mix: Elite Trader - "Offering insight, Bidding participation" Elite Trader - "Traders trading ideas on trading" Elite Trader - "The meeting of the minds on the markets" Elite Trader - "Speculations by speculators" Cheers, -Traden4Alpha

darkhorse, <b>Bootstrapping</b> Your bootstrapping concept (using our own money to get a foot in the door and then only use the market's money after that) sounds very intriguing. The tricky key to bootstrapping, though, is to ensure that one's very first trades are winners. A drawdown at...

Interesting analogy, darkhorse (I like 'consider this' and 'look at that' tangents). It seems, to me, that a trading system is similar to the computer designed amoeba that you mentioned. In both cases a notional set of rules defines the thing's behavior in some environment (either the markets...

You are totally right, the examples are totally contrived to illustrate a point. That point is that if you use margin, the losses create a deeper hole to climb out of than if you do not use margin. In that one example a loss of 1.25/sh (on a $100/share stock) has an asymmetric impact on margin...

CartelTrader, Sorry to hear about the string of down-days. I, too, hit a rough patch (mine was back in mid-May to mid-June). The people here at ET really helped me in both getting my head back on straighter (its still not totally straight :) ) and forced me to really think about my trading...

Hey, darkhorse, great thread! I too like wildcatting for interesting new ideas. You might enjoy "Latticework" by Robert Hagstrom. Its a fun romp through a bunch of different disciplines with lots of fodder for new mental models related to the markets. Although the book claims to be related...

I think buying puts on Martha Stewart would be a "good thing" right now.

OK, lets work through your example of a two traders, both 100k cash, both willing to risk 5%, both trading the same stock with the same entry and exit, but with different margin borrowing strategies. <b>Aggressive Trader: </b> The aggressive trader buys 4000 ABC@100 with $1.25 stop. The...

OK, I knew someone would catch the fact that my examples use the rather risky practice of buying a single position with the entirety of the account (should have guessed it would be you, daniel_m, as it is hard to get one past you :) ). Anyhoo, the example also works if you construct a more...

<b>constant position size?</b> Yes, its true that maintaining a constant position size would have the effect that you state, but only if the 15% gain trade occurs BEFORE the 10% loss trade. In the event that the 10% loss occurs first, Trader 1 would have only 90k in their account after...

OK, I can see where this can get confusing. Lets pretend that we are swing trading a stock and our first trade goes well (gaining 15% on a nice upswing), but our second trade goes poorly (losing 10% on an overnight price drop). So how'd we do? Well, lets say we have two traders entering the...

I use margin in two ways: 1) My swing trading system looks for stocks that have "fallen too much" so that I can expect a profitable bounce. Depending on the stock and prior price action, the definition of "fallen too much" may be anywhere from 3% to 50% below the prior end-of-day closing...

Thanx for the confirmation of proper ETiquette. I, too, hope that authors and representatives of trading-related product/service firms will participate meaningfully at ET. I do not mind a bit'o infomercial, as long as it is heavy on the "info" and light on the "-mercial" (I'll even secretly...

Possible? Of course! Just send 3 easy payments of $995 ea + S&H to headsiwintailsyoulose.com. Now, we've trained millions of successful coin flippers JUST LIKE YOU! Although past results are no guarantee for future performance, history has a way of repeating itself time after time. And...

Possible? You Bet! Just send 3 easy payments of $995 each + S&H to headsiwintailsyoulose.com. We've trained thousands of successful coin flippers JUST LIKE YOU! Although past results are no guarantee for future performance, history has a way of repeating itself time after time. And...