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Sorry, but I can not concur that a letter of credit can be considered as a cash collateral as there is, by definition, big credit risk on letters of credit. A massive haircut would have to be applied to a letter of credit that would make it impractical (if you are interested in looking into...

A "letter of credit" ? I think you must be mistaking instruments here. A letter of credit is a payment instrument that necessarily implies 3 parties (like a check). Are you thinking of "credit lines" between financial institutions ? Which OTC instruments do not involve such flows ? Both the...

I'm not sure where you would find this information, but I suspect it would be a very small % and irrelevant. Most of the "real deals" that imply delivery are OTC and unpublished.

Sorry for not having included in my previous post: "If 20000 contracts are purchased from people entering new shorts, then open interest increases 20k." ... Not necessarily, these new shorts could have very well been matched with existing short positions that are closing out their...

Contrary to trying to prolong their positions, all of the funds that I have worked with tend to roll/close their positions at least a few days before expiry.

I don't understand your logic. For every contract open there is both a buyer and a seller. How could one possibly conclude that there is more/less buying/selling pressure from a change in open interest ?

..."when ICE freezes" :)

Precisely my point last week, yes

Yes, compounding is defintely key to long term success. In regards to win rate, I run a low probability model. About 60 to 70% of my trades are losers that get stoped out. The winners tend to run for a rather long time (often a couple weeks to well over a month) and these winners largely make...

Well said, yes, I agree that I should have emphasized a "do not attempt this at home until comprehensive research and modeling is accomplished" :) I may add here that I blew up 2 accounts in my first 2 years of trading, but I was not doing what I do now. The problem was the classic...

Austin, I entirely apreciate your thoughts and I completely agree that many would blow up in attempting increasing risk after a loss because many are just naive, inexperienced, or don't take the time to do alot of research and build a workable model. ... In any case, I think that many...

Ok, it would seem that we are just confusing terms here. If you maintain a fixed % risk on capital, then you may be increasing size after a win (but not necessarily, you could be reducing/ maintaining size and placing stop further out) and in consequence risking more in absolute terms. In...

Your statement would be correct if the risk increase after a loss were to be "rather large". This is why it is important to control risk increase rate to a safe level. Again, any method can blow an account with a long enough losing streak. Furthermore, in regards to increasing size after a...

How can you justify taking more risk when you are up and vice versa ? As far as taking more risk when you are down is concerned, look back through the thread for justifications. Is it possible you are missing some important points here ? I am definitely not suggesting "adding to losers".

Illiquid, To borrow your blackjack example, lets look at this. If go to the table with 10 000, bet 1 000, and lose, and then if you bet 1 000 a second time, you have in fact just increased real risk because by betting 1K on you remaining 9K is risking a larger % of your capital (1K of 10K...

Jimmy, again, the size of the trade is NOT necessarily tiny. Taking on small risk does not necesarily imply a small position. For example, my positions tend to be rather large in low volatility zones. This is because the low volatility allows for a tighter stop, and to off-set the tight stop...

Ah ok. No, don't worry, I was definitely not going there. Not looking for any tricks :) Yes, of course entries are important, but unfortunately, obtaining a good entry envolves alot of "luck" (for lack of a better word off the top of my head) inso far that whater formation or set up you see...

I apreciate your point, but it seems to me to be a bit off topic here. The discussion was on the subject of enhancing performance through objective and quantifiable risk management. "trying to be a better trader" or "trying to get a better entry" is all well, nice, and friendly advice...

Ok, then would you mind explaining how exactly you are going to "get a better entry" on your next trade ?

Far from suggesting that my entries are fantastic, I would like to say that even with relatively poor entries one can do quite well if risk management is maintained inteligently. Risk management is far more important (and more realistic to atain because you can control your risk to a great...