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often you can use some parameter transformation to make sure the optimisert passes aren't wasted. for example, if a>=0, b>=0, a+b<=1 you can define, 0<=x<=1, 0<=y<=1, a=x, b = (1-x)*y. You can apply the same logic in more complex non-linear cases. The point is: 1) If you can simplify the...

Where untested economic theories come into play is "quantitative easing" supposedely used to combat the crisis.

Another point of view is the crisis happened DUE to too much regulation. For decades certain financial institutions such as pension funds have been forced by regulations to rely on credit rating (assigned by rating agencies such as Moodys, S&P or Fitch) as the main indicator of risk. In...

Running TWS minimized may help.

An angry troll?

Here you probably need legal advice. There are a large number of trading platform vendors that can suggest (and even execute) trades for the client but they don't come as a trading system but as a platform. Most platforms come with sample trading systems that actually can suggest trades based...

Having a stop-loss is a prudent way to improve a strategy. In practice, you want to limit the loss in case the unexpected happened. On the other hand 4% improvement is in the range of statistical error unless the number of trades in the backtest is in high thousands.

I have to agree with fullautotrading. You have to do backtesting yearself because very few software packages support sub-second time stamps on data or level 2 quotes in backtest; you'll also have to dop execution yourself because few pieces of software (if any) support more than one...

If you gain access to information from a customer's account (trade executions) and provide tailored trading recommendations based on it, it is clearly financial advice. You can argue it is "automated". For comparison imagine the customer lets you know execution details to you on the phone...

Softgiant, it is a good strategy unless you rely on very infrequent "home runs" or you scale out of a position systematically. What often happens is the price hits a minor support/resistance and the risk/reward for holding a position versus closing it changes dramatically.

Unreservedly agree

Including commission a trader probabbly ends up with a tiny profit or a tiny loss. Here is the answer. The other way to look at it is by staying out of the market the trader learns patience while by entering a position a trader gains confidence in the entry method and learns managing an open...

This is the most profound implication! I have always been under impression that repeatedly doubling down is not efficient use of capital. Edit: Doubling down aside, when you are trading in a choppy market, do you consider extending the stop loss... or do you patiently wait for another trade...

It is invariably the issuer. In this case - Goldman Sachs.

The outcomes of individual trades are necessarily independent. They are dependent on the methodology. So, only Handle actually knows if they are anywahere close to independent. As for outright "martingale approach", assume you go long every time ES goes down 2 points, you double position if...

Big Money, I need to think about this. I think I'll be back with more questions shortly.

> Too few of traders have tested back far enough Why do you think is that? 1) They don't find it necessary; 2) They are lazy; 3) They don't have a clear trading plan; 4) They need higher-resolution data than minute data (tick data is way more expensive); 5) Any other reason?

That's when 2 bankers meet a canteen: - I'd love to buy you donuts but I can't. That will be a violation of court order. - Let' meet a a cafe behind the corner. I have some secret documents to exchange...

It depends on whether you have an offer from one of the top schools. If you do, consider if you'd enjoy studying. If you don't, see if you have an offer from a good prop firm that pays salary. Edit: For 90% job in finance the name of the school matters more than the name of the degree.

There are complex privacy settings...