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You got it. Not only that. The Banks can loan the money back to other hedge funds. Every hedge fund has one or more custodian bank. The money sits at the bank in an account in the name of the fund and it is a liability of the bank. The bank pays interest on the money to the fund and can loan...

Good post! Although the sample is very small to produce high statistical significance, note the five year dominant cycle. Whenever the five year cycle was skipped, the drop was severe in the order of 50%, as in 1975 and 2000. This time around, the cycle was not fully skipped and one (not...

I think you are over-reacting. Theoretical studies are very useful. Early theoretical studies on technical analysis confirmed what everybody knows, i.e. the fact that 95% of traders lose money. You laugh at academicians but I tell you, they laugh back at you because they believe that your...

Some think there is no value: http://www.sciencedirect.com/science/article/B6VCY-4HNSG69-1/2/7b380d32ea112a05b64ceb59a9d70009 others think there is some value: (study using shooting star) http://www.westga.edu/~bquest/2008/candlestick08.pdf From the conclusion: "...the empirical...

Totally irrelevant. You can consider the players who make the commissions together with the players that win as one player. Same for losers. Ron

Not at all. You are using the correct terms, assets and liabilities. You are not missing anything in that respect. But you use the terms the wrong way. Ron

You are missing nothing. You just refuse to look at things the correct way. Banks do NOT own deposits, the customers do. Not only that, they can withdraw deposits on demand, even CDs with a penalty. Banks own the loans they make. In turn the borrowers owe the money to the banks. If...

Hello Walter, I don't know the details of what you are trying to do, like for example what kind of strategies you are running, how complicated they are, the size of historical data files you are using, the CPU speed, etc. as all these parameters affect execution speed. This program I'm using...

Bill, I don't think you'll find a "legal" used copy around. I have the program and use it on a daily basis. It has paid for itself several times and it does exactly what it's supposed to do, surprisingly so because I did not believe it when I bought it. In general I think purchasing...

It is because you do not know the proper meaning of the terms used in the banking industry. "Assets" in banking are the loans and "liabilities" are the deposits. In a very simplified way, the profit of a bank is given by: profit = interest received on loans - interest paid on deposits...

It is critical but not in the way you think. The numbers show there is nothing wrong with the banking system. Contrary tio what you think, surplus is up and banks satisfy reserve requirements. Note that there are countries like Canada for example, with no reserve requirements. US has a...

Pyramiding positions can get you ruined if something unexpected happens. I agree that pyramiding is a way to make more money but I do NOT recommend it to anyone. Ron

Good point! Ron

It simply means that all the bad news is now reflected in prices, the market is short term oversold and there will be a short covering until buying subsides. I wonder why you are asking. This is so basic. Whoever did not buy yesterday during the day or MOC does not know how to trade. Ron

Michael Harris of Tradingpatterns.com in his book "Profitability and Systematic Trading" coined the term Synthesis of Trading Systems for the process of mechanical descovery of trading strategies. The book is out of print but I think a new edition will be published by Wiley & Sons soon. There...

According to the formula derived by Michael Harris, best case scenario with an average win/average loss of 2.5 produces a profit factor equal to 1.67. I consider it a low profit factor. If the ratio drops to 2.0 then the profit factor drops to about 1.3 and you are not making any money after...

He is correct. Just go to any bank and say you have good credit and you need a loan. No problem. Only for high risk borrowers there is a credit crunch. There is plenty of money available to loan. Actually, the problem of banks is that they have plenty of money to lend sitting around while they...

Not that simple. It's a formally fallacious statement. It assumes you know which trade is going to be a loser. But trades rarely are winners from start. What matters is the relation of average win to average loss, success rate and profit factor...

Lol, out the $42 billion or whatever, probably $1 billion is for the lawyers:) Ron

I never figured out what NNs really do. It appears to me they are just a fancy way of optimizing indicators but I may be wrong. It is a fact though that their use peaked in the mid 90's and they represent nothing new and I dare to say nothing promising. I have APS and I use it mainly with...