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...admittedly this is not the advice you're looking for, but IMO the price IS the news. What if the news is good and the price goes down, or vice versa (very common in index instruments)? My advice is to pay attention to that legendary trader Paul Simon (it is not well known that he sings...

...I can sense that you are warming up to this idea. This is a P.T.Barnum business opportunity, and I'm letting you in on the ground floor. For round two of the trading contest, we have a tag team event. I get to pick the ET posters here that I think walk the walk, and YOU have to take the ones...

...I would like to offer one caveat. I believe random entry with money management WOULD work between 9:45 and 10:30 EST (peak daily volatility). I offer as a data point that I traded a system for a month and made money before I realized it was for all intents and purposes nearly random. I had...

...thanks. I didn't mean to imply that I took offense. I'm just pissed off that I spent so much time to prove to myself something stupid like that. I had high hopes that random entry WOULD work, so I could completely abdicate responsibility for my trading decisions. Now I have to go back to...

...thanks for explaining. That's heavy. This is the first year I've made money with futures, so I forgot about the tax angle. And ah, yes, gold. I remember how delicious it was selling the fillings out of my teeth in '73. Practically had to cut the wife's finger off to get at her wedding band.

..I deseeeerve it, I neeeeed it. I waaaaant it. Quoting Janice Joplin, Oh Lord, woncha buy me a Mercedes-Benz? My friends all drive Porshies, I must make amends. Worked hard all my lifetime, no help from my friends. Oh Lord, woncha buy me a Mercedes-Benz? Oh Lord, woncha buy me a...

..the discussion of scaling in is confusing me. I have not developed any system (admitedly none are better than mediocre) that benefit from scaling in. In every case it is better to go whole hog at the beginning. Anyone have contrary experience? If so, can you identify the general nature of the...

...thanks for relating your time frame to your risk assessment. At the risk of embarrassing myself, I would like to ask this stupid question, because I think there must be a smart answer to it. With that much cash, and assessing the NQ risk the same as ES risk, why not just trade QQQ and SPY...

..thanks for the lead. That's one I was not aware of. I'll check it out. Need help big time with some really fundamental questions on assessing the goodness of a system. - Mike

...I should also add that my opinion is also supported by the experience of developing many "systems" which later turned out to be random entry, and even in high volatility soon failed to work. BTW, if I may ask does Breakout use a breakout? - Mike

...I am humbled that YOU would ask ME. The way I do it is very painful. I try to keep my candidate systems limited to five rules. Two of them are time rules and I expect them to have weak influence on expectation. The other three are the entry rule, the stop rule (which may also trigger a...

...your conservative (to me) account sizing suggests that you are holding for days. If I may ask, please, is that coorect? Just trying to learn from the experts. TIA. - Mike

Actually this happened to me. I sold the open every Friday and covered it at the close every Monday. It caught on and everybody did it. Bummer. So many did it that now the system is oscillating in transition to the opposite strategy. Just watch. You can help if you like.

Random entry with money management is a grand idea but it simply doesn't make much money with the commissions po' boys pay. Add in market orders and slippage and it's a total loser. It's easy enough to code and test if you are willing to take the time to make enough runs. The only time it works...

...what Robert Deel calls microtrading some other folks might call swing trading. Please permit me to recommend Alan Farley's book The Master Swing Trader. A very dense book, IMO requiring a few reads to sink in, but it is well worth the price and the effort. I would be hard pressed to think of...

...thank you kindly for that answer. There is no substitute for talking to the man who has been there. I do plan to automate, but at the moment I am still enjoying the therapeutic benefits of being the monkey who pushes the button for the system. The things that go through my head while the...

...hmmm? Thanks for clearing that up. I'll ask my correspondent again what his experience is. Re limit orders, does that mean that you use market orders mostly, even when liquidity is high? I haven't a clue because I never use limit orders. I backtest with market orders and use them all the...

...Glad to hear all is well. Good luck to you.

...thanks for the explication. Very enlightening. Have you automated your tape reading? Is the next step beyond TA no chart at all? - Mike

...wish ah wuz still in Big D. AFTA still goin' stong? For the record re Deel, he still espouses the several day position trading he presented to us and covered in his book. I just haven't got the patience for it. Need raw meat! Now!