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i think this whole mean reversion thing is a good idea. things tend to revert to their mean . . .there are some laws of financial gravity. BUT. and i think this is a big but there can be pricing analomies that persist. and they probably persist for some fundamental underlying reason. like...

i think this stat arb thing is interesting, if you buy somethin you gotta sell somethin . . . i'm not familiar with the mechanics, but the concept is interesting. i think i'm going to buy chan's book on algo trading to see what he says about this for now i'm trying to find a shortcut to...

here's the link to brian shannon's note on this: alphatrends.blogspot.com/2007/11/institutional-trading-benchmark.html

i know some day traders (for example, brian shannon) use vwap a lot (volume weighted average price), but i don't really know how i think vwap is also used in automated trading

nice try. see the movie wall st (final scenes) :D play by the book

NinjaTrader has the linear regression function in its technical analysis toolbox. BTW, it's surprisingly easy to use, you just move the mouse around, and it automatically draws the best fit line through the selected chart segment. The Ninja is a FREE tool for simulated trading and...

i am very excited by MPEL (Macao casino), but i'm not going to buy it

i'm a little puzzled people have mentioned livermore and jhunjhunwalla - admittedly, both good traders - but not dirk du toit (forex) it may sound like a stretch to some, but i think his 'bird watching in lion country' alone outweighs all the achievements of livermore and jhunjhunwalla taken...

article re setting up a hedge fund. a little legalistic, but no one said setting up a hedge fund is easy, or cheap, for that matter :D Varima-Garch

1. quick update on the finviz (visualization) - based paper trade i mentioned earlier. looks like showing a small profit, but will keep it open to see what happens further. not going to hijack jonnysharp's excellent journal with untested etf ideas, so i'm hereby disappearing from the thread...

good question, actually . .. :confused: at the end of the day it's only price that pays, not the ratio

i'm rookie, but i think you need the ratio chart for the following: to see if there is a mean-reverting pattern in the ratio itself. if there is, if it tends to pull back from extreme values - like a stock trading in a channel (where you can then use atr/kettler or bollinger bands) you...

that's a good analogy. the probability of a win with these types of stocks is somewhat similar to lottery. no wonder tim knight (one of the great traders of our time, in my opinion), literally calles them 'lottery stocks', and he publishes a list of them on his site slopeofhope. so it's...

what i find irritating about niederhoffer is that he is selling himself as some kind of a renaissance man . . . niederhoffer thinks this about beethoven, niederhoffer likes chess, niederhoffer on psychoanalysis, niedrhoffer on art you know what? niederhoffer blew up making unhedged bets...

1) linda raschke 2) brian shannon (alphatrends); 'upsidetrader' joe donohue 3) tim knight

thanks everone for contributing your thoughts on iron condors, an exciting topic. some of the comments have been more critical than others, but that's ok. to me options are about learning the truth about options, not about being right, per se. BTW, i don't think this observation applies...

Mark, appreciate your thoughts on this. sounds like i need to make a judgment here, and choose between time decay and gamma. it won't be easy, but it doesn't have to be. i guess what it boils down to is that i have to find my own comfort zone here. Varima-Garch

1) your breakup of the trading day into time segments seems a little arbitrary. what if you made only one trade per day, with an entry always at 2pm, with a max holding period of 2 days? i think it helps to backtest this kind of stuff if you use ninjatrader, check this out...

interesting stuff, guys! let me add one on options: blog.mdwoptions.com/options_for_rookies/ a MUST read for anyone interested in options, beginner or otherwise. written in very clear, human language and not overloaded with technical terminology. applause to mark wolfinger, a...

hi guys. i'm rookie. i may have asked this before, but i'd be interested to know if anyone has a view on this i think visualizations may be a handy tool in pairs trading, in addition to various statistical. specifically: marketrac.nyse.com/mt/index.html finviz.com (the market map) it...