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Ok, good post.

Yes, but when? How can you tell it is ready to go back to zero?

There was something on pg 4-5 about analysing/predicting the residuals here: http://arb-maker.com/wp-content/uploads/2012/06/Quick-guide-Principles-and-Practicalities.pdf What does it mean?

How does ArbMaker analyse/forecast the "residuals" since they are random/normally distributed? It is generally mean reverting but how do you predict what is the next value/range between the upper/lower limits?

To understand why NN might not work, look at this first http://www.elitetrader.com/vb/showthread.php?s=&threadid=240936

This trader performance seems more stable than the rest. http://championship.mql5.com/2011/en/users/Pirat/reports

Maybe someone good in math can summarise the contents of the links to papers here: http://www.physicsforums.com/showthread.php?t=556392 http://www.mathpages.com/home/kmath682/kmath682.htm What does it say:confused:

Maybe can apply parrondo concept in hedging a system buysell signal and making it profitable overall by varying the size of opposing sides trades. http://www.eleceng.adelaide.edu.au/Groups/parrondo/intro.html#original http://www.win-maxx.com/systems/sys09.shtml...

Thanks for the info. Here's some interesting reading material http://www.forexfactory.com/showthread.php?t=275566 http://forex.knowforfree.com/improve-forex-strategies-with-consecutive-losses/ http://www.optionetics.com/market/articles/21296

+1...but how to determine how much?

I mean express edge in terms of C,X & U of the inequality equation above, and then setting it >0,..., what does it all mean?

Is prob(intradaybil)=1-prob(kut2k2) or is it possible they co-exist as prob(trader666)?:p

Sounds like Quantum Physics stuff...Is prob(rich)=1-prob(ruin)? Or perhaps you can be both ruin & super rich at the same time...Parallel universe perhaps? http://en.wikipedia.org/wiki/Schr%C3%B6dinger's_cat In other words, is prob(zero prob event happening)=1-prob(prob 1 event Not happen) or...

Maybe used wheeling to generate many $1tickets...Need 3 brains to come out with a no. selection system...what method did they use for no. filtering before wheeling?

Setting RoR = ((1-edge)/(1+edge))^((C-X)/U)<1, What is the edge requirement expression?

Say I am interested in q/p ratio to be profitable, Set (q/p)^(C-X)<1, => q/p < InverseLog(Log1/(C-X)) Is this requirement correct?

Ok, express this mathematically for any instantaneous B,bankroll, b,bet size, p-q & risk/reward ratio. i.e. When is prob(rich) at least = prob(ruin), if it is even possible?

On what? Prob(infinitely rich) overtaking prob(ruin)? :p

The path to ruin is easier. It takes 100% effort just to bring a 50% loss in capital back to breakeven. Dow index takes the escalator up but elevator down.

You got it...The point is to find a mathematical expression of this finite prob. When is this prob(streak of losses just enough to ruin its bankroll B) > 50%? i.e. Is it possible to express this prob in terms of current bankroll B, b, N, p, q, etc?