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Exchange Traded Funds. New ones appearing daily. If you develop rule-based trading algorithms on historical data for the first 50 or so ETF's that came out, you may discover that you have large diameter cojones and wish to trade those algorithms on all the brand new ETF's.

In physical commodities this is called "Scale Trading" and is quite popular. The gurus of the approach are Wiest (link to book1), Namrevo (link to book2), and McCafferty (link to book3).

Baccarat. High rollers bet $1M on a single hand of baccarat; in roulette you can't bet more than $500 on a number, $10K on red or black.

Your friend will have difficulties obtaining and using historical data on options prices, even equity index options prices. The problem with multiple systems is, they seldom do what you hope, which is to protect you against big adverse moves by having partially offsetting positions. In fact...

You have to ask yourself "How important is this to me?" If it is Very Important, then follow these steps:Buy this book from Amazon Read the description of the Chaos Awesome Oscillator Understand the description of the Chaos Awesome Oscillator Write a computer program that implements the...

I prefer to sell DOTM strangles (naked). These require a very liquid option chain, or else you'll get killed by the bid-ask spread. In my experience, "slippage" is much more important than commissions, assuming you're paying discount broker commissions such as IB or MBtrading charge.

Here's a futures fund that made a compound annual growth rate of 49.2% per year, for the last six years (link1). Here's another fund whose compound annual growth rate for the last seven years, is 69.1% per year (link2). Each $1.00 invested in this fund on 1/1/1999 has grown to $39.67 on...

The very best professionals investors (EXAMPLE) who exclusively trade options, don't achieve 50% returns every 3 months. But heck, you might be better than them! You also might be willing to accept more risk than them. Or you might be luckier than them. How will you ever really know unless...

There may be some Karmic Actions To Avoid in this post: http://www.elitetrader.com/vb/showthread.php?s=&postid=919106

1. Obtain daily data (1 bar == 1 trading day) which includes volume and open interest. CSI is one vendor who sells this, and I'm sure there are others. 2. Find the days when open interest dramatically shifts from the old month to the new month. (80%, 20%) becomes (20%, 80%) in one day...

I like to fade the overbought/oversold indicators. My favorite (most profitable) play is to fade the Larry Williams Percent R indicator. When it says "overbought", I buy. When it says "oversold", I sell. Try a bunch of combinations in your computer and see which ones you like the best. I...

I found it was psychologically more difficult to complete the entire round-trip trade of selling a (naked) straddle. There were too many decisions, too often, for my taste. To leg-out or not to leg-out? If so, when and why? To roll-out or not to roll-out? If so, when and why? I found it...

I have (this book). It's got the same title you mention, but a different author. How weird that two different writers would choose the exact same title!

:p :) On the other hand, it's quite easy to find members of the International Brotherhood of Magicians who are multi-millionaires. What rhymes with "Gopperfield?" Who is David Blaine? When hold-em poker players have a pair of queens, what do they say? Who is Lance Burton? "Magic" has its...

I use an IB of Man Futures to trade futures in CBOT grains, CME meats, COMEX metals, NYBOT softs (coffee, sugar, cocoa, ojuice), NYMEX energies, and NYBOT/FINEX currencies. The pit traded futures have been absolutely no problem for me. I'm a position trader not a daytrader, average trade lasts...

Unfortunately, Perry Kaufman (like all humans) makes mistakes, even when writing books. All four editions of his book Trading Systems and Methods contain mistakes. Some of these mistakes are in all four editions -- he never found them and never fixed them. For example, there is a gigantic...

If your trading is sufficiently* profitable, but it bores you, you can consider encapsulating your trading approach as a 100% mechanical trading system, i.e., a computer program. Then you can have someone robo-trade it for you (Tradestation Securities, Fidelity/Wealth-Lab for stocks, Wisdom...

I'm a member of the International Brotherhood of Magicians. You know us: we are the people who make coins appear and disappear, pull rabbits out of tophats, saw women in half, make the four aces jump out of a deck of cards, and yes, get mauled by white tigers onstage in Las Vegas. What we do...

I learned in Mountain View, California. http://maps.yahoo.com/maps_result?addr=&csz=Mountain+View%2C+CA&country=us&new=1&name=&qty=

I'm a position trader with an average trade duration of 3 to 6 months. I trade a big portfolio of futures markets, including the two mentioned here: Brent Crude and Ten Year Notes. For what it's worth, my trading systems seem to extract more profit per trade from Brent Crude than from Ten...