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  1. R

    Trade Station is far worse than IB

    It sounds like this is a problem with your graphics card. You probably need a high performance card. Try that first to see what happens. Ron
  2. R

    ALL MAJOR USA investment banks...INSOLVENT RISK VERY HIGH

    Probably will have a short-lived run up but not for long. It will happen mainly due to a fear of intervention and demonstrations by European exporters in France and Germany. For many years the USD was kept overvalued mainly to finance the European Union and thus indirectly contribute to its...
  3. R

    Why is the US considered a driver of the world economy if they just consume?

    I would add that the parliament is mainly ruled by Germany and France and the rest just sit there and watch getting screwed. The EURO risks going down the drain as soon as some country abolishes it. I had several discussions with some Europeans this summer while I was on vacation and I...
  4. R

    Position Size and Market Volatility - Trend Traders

    Sorry about the bad link. The correct link to the article "Relation of Expected Gain to Kelly Formula" is: http://www.tradingpatterns.com/About_Us/articles/articles.html Ron
  5. R

    Martin Armstrong (Princeton Economics)

    It sounds like some very powerful person is after him and wants to make sure he spends the rest of his life behind bars. Obviously, the Supreme Court decision is unconstitutional. Ivan Boesky stole $200 million in a proven case, returned back only half of it and stayed behind bars for only 2...
  6. R

    QQQQ patterns

    John, Data mining is a very powerful method for discovering patterns of all kinds. I think even retailers use programs based on such methods to discover hidden patterns in sales data. I would be surprised if APS is using such technique. It is not based on neural nets for sure. What systems...
  7. R

    Position Size and Market Volatility - Trend Traders

    This is true, especially when someone is not sure about the future actual performance of a system. But if you have a system that has behaved well under actual market conditions and in real trading then Kelly%, or a modification thereof, is the answer. The article by Michael Harris on the...
  8. R

    Position Size and Market Volatility - Trend Traders

    Position size = (percent risk x current bankroll) /( n x ATR) ATR = Average True Range for a period of k bars. Usually k = 14 n = a multiplier (usually equal to 2 meaning that you exit if the price moves two average days against you) For trend following maybe you want to use n = 5 or...
  9. R

    E-Trade gets slapped on the wrist - big deal

    It appears then in retrospect from the SEC allegations that when they bought the firm they started front running customer orders. It doesn't worth front running an order for 100 shares of IBM but it certainly pays front running 20,000 shares of RIMM. Ron
  10. R

    How to rebalance short/long positions?

    Good question. I would add to the position that generated the profit until some indicators reverse direction. Ron
  11. R

    Learning Curve for sucesssful trading

    Equities are not a zero-sum game but equity trading is a zero-sum game. Unless you can prove to me that losses of some players do not turn into profits of some other players. I will also question the notion that positive expectancy is due to upward bias. If this is true, we can easily...
  12. R

    Gisele Bundchen wants to get paid in anything but US$

    This is the strongest possible indication that we are near to a trend reversal in USD. Ron
  13. R

    Learning Curve for sucesssful trading

    You do not want everyone to "get it" anyway, otherwise there would be no winners, prices would stay flat and you would be out of business. For every good trader you produce you must also produce 10 losers so the good one can become a winner. Ron
  14. R

    Learning Curve for sucesssful trading

    Basically, a 40% drawdown (from a peak of 100K down to 60K if I understand you correctly) is way too much and your equity swing is an indication that your trading is based on luck rather than on a method with a systematic winning bias. If you do not understand the difference between random...
  15. R

    Losing Execution Priority using IB TWS

    Someone else also asked you the same question and you did not answer. Why do you place both buy and sell orders for the same stock at the same time? Can you give a specific example? Ron
  16. R

    CROX, RIMM and other bubbles

    EBAY P/E is 366 vs 103 for AMZN Maybe you got it backwards. Ron
  17. R

    CROX, RIMM and other bubbles

    P/E = 79 This is a bubble for sure regardless of whether the company is making money. Ron
  18. R

    Citi to take $8 billion to $11 billion in additional writedowns

    I do not think you understand what I wrote. Money went someplace, it was not destroyed. Wealth was transferred from the bankers to others. Some will fire but some others will hire. Have you looked at the latest employment numbers? Ron
  19. R

    Do any brokers provide this risk control?

    For E-mini for example: Leverage = 50 x price x Number of contracts/current bankroll For T-Bonds for example: Leverage = 100,000 x Number of contracts /current bankroll In general: Leverage = Value of asset x Number /current bankroll It is easy to figure out how many contacts...
  20. R

    Citi to take $8 billion to $11 billion in additional writedowns

    So what? How is this affecting the Economy? I think there is no effect because no money was destroyed but just changed hands, from the banks to home buyers and then became salaries of construction workers and revenue of building materials. Because some stupid bankers made wrong risk...
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