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    The Market's House Edge! :(

    Mike, Seems like you understand that spread (one can view it as "house edge") or whatever is a serious costs. Thats what I want to clarify. Thanks
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    The Market's House Edge! :(

    Hi Mike, If you do not believe in house edge, do you always use market orders to get in your trades? And, are you a daytrader or longer term trader? I tend to agree with Remiraz that there is actually some sort of house edge because the real price is something in between bid and ask, and if...
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    KOSPI options

    Any idea what kind of volatility are these options traded at?
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    Do Gaps Always Get Filled

    Is everybody referring to the same types of gaps? What time frame charts are we talking here? I assume it is the gaps on the daily chart. Even so, there are 2 types here...the true gap where price opens outside of yesterday's range and the other type of gap..forgot the term..where todays open is...
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    IB or Oanda or ????

    Hi all, I know the question of which forex broker is better has been debated many times before. I would like to open a 100k account to trade spot forex. I currently have smaller accounts with Oanda and IB. I trade quite infrequently and I enter and exit based mostly on STOPS, as I cannot...
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    Do Automated Trading Systems Work?

    Hi rufus, Can you explain a bit more what you mean by pseudo market making? Put on one-sided orders in sequence to simulate the behaviour? Do you mean selling on strength and buying on weakness (hence, one-sided) looking for some sort of mean reversion? And for those of you doing so many...
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    Money Management

    Is there ever an optimal position sizing ( money management ) rule? ONLY if you know for sure what is the absolute worst black swan loss in the future, which we will never know. So, if you have a postive expectancy system according to your research, the best money management strategy trades a...
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    Interested in a day trading method ?

    Hi rufus, Can you give an example of a statitiscal model?
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    SPX Credit Spread Trader

    Hi Coach, What do you mean by "add another 1-3% on top of the 6% yields"? Those price changes can result in capital losses and might lessen your overall realised yield. How much is the total average yield over a period of years that you have achieved with your CEF investments? And do you do...
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    Can scaling/averaging down be a viable trading system?

    Do you have any idea what his average return per annum is? He has to allocate a large sum for averaging down. If the bank stock only has shallow retracements, he will make money but only on a small position. If he decides to average down on more frequent and tighter basis, he needs large...
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    SPX Credit Spread Trader

    Hi Momoney, Just to clarify. Do you buy a hedge insurance if price moves against you? I was thinking a hedge might smoothen the equity curve eventhough you might be better off in the long run if you didn't.
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    Discretionary Versus Mechanical System Trading

    Oddtrader, Your answer is rather odd.:confused: So, are you mechanical or discretionary?:)
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    Discretionary Versus Mechanical System Trading

    This is not what I am looking for. I have equity curves on all my systems. Just would like to have an idea what sort of mechanical systems others trade in terms of performance measures. Again, don't give me answers like "it does not matter what others trade, trade what you are comfortable...
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    Discretionary Versus Mechanical System Trading

    For a 100% mechanical trading system with no discretion, what would be good performance measures before one trades it? To those good and experienced mechanical traders, is a system with 46% winning ratio with average winner being 2 times bigger than average loser in a daytrading strategy, good...
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    Drawdown Calculation

    Current Equity Level - Beginning Capital - Capital Added during 12 months = Profit Earned for Year Next, Calculate Average Capital Employed During the Year by weighting it with the months. Example: Started with 10k, after 5 months add another 5 k. By end of year, equity is 22k. So, profit...
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    Drawdown Calculation

    Always use equity high to calculate drawdown. Using initial principal is meaningless.
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    ib will kill all now with new rates

    Hi def, Just to clarify. For traders trading mainly futures and carry overnight instead of day trading, should they choose bundled or unbundled? Thanks
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    Few security tips on computer systems.

    Hi Mr. Profit, Can you explain a bit why it is so important to create another "user" account? And, what is "enable CTRL-ALT-DELETE login protection? How do you do it and why? Sorry for the ignorance! Thanks
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    Using Martingale with a proven strategy.

    If your success rate is only 40%, you can expect a much higher consecutive losers in the not so distant future.
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    SPX Credit Spread Trader

    Hi Coach, I understand that you only look into selling put spreads when there is a move downward. Why? There is nothing to prevent further downward move after you sell, right? Why don't you treat the price movement as random and just sell without predicting market direction? Same with opening...
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