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Absolutely true. And before anyone asks why all the smart money isn't automated...it's down to cost efficiencies. Why bother spending $$$ to fully automate a system if you can pay a good trader $$ or $ to implement the system for you? The reason people aren't automating everything is...

Wise words Nitro. An automated strategy that is not totally adaptive is doomed to failure in the long run. However, if you can build an automated strategy that defines all its parameters based on actual market data, rather than some random numbers spat out by a backtest optimisation, then you...

If you have a system then by definition it must be possible to describe that system with a number of clearly expressed rules. If you can automate those rules then your system can be traded by a machine. It's as simple as that. Discretionary traders will tell you that their systems can't...

Agreed. I personally think stops (and I assume we are talking about stops here in the context of liquidating your entire position in one go) should be there as a crash mat to try to salvage what you can from a position in the event of a runaway price move or gap. I got the impression though...

Here's a thought... Why would you want to exit a winning trade using a stop? Doesn't that strike anyone as being a particularly passive way to exit a position? Sit back and watch the market fall through your stop? There are more fruitful and proactive ways of exiting positions which might...

Couldn't agree more. An interesting piece... The Incredibly Shrinking Market Liquidity, Or The Upcoming Black Swan Of Black Swans Just watch this royally fuck all the quants out there who have even a hint of non-adaptive volume calculations built into their models.

Indeedy. Makes me laugh these days when I read the musings of these people. I can usually get a feel within the first paragraph as to whether they have ever seriously been involved in the activity of 'trading'. The vast majority of people out there writing about this game have never actually had...

Ah yes, Dr Smart's "Suffer a nervous breakdown in 10 days" approach to position sizing...for those people not satisfied with the horrendous drawdown and risk of ruin presented by trading optimal F. Given that he published this in 2007 I wonder if there's anyone out there still using this...

As this thread comes to an end I'd like to say thanks to all those people who participated in a constructive way. No easy answers were given in this thread, and that was its greatest strength. For me this thread provided confirmation, confusion, enlightenment and bewilderment in equal...

Wasn't being dismissive there F9. Just stating that to my mind the definition of 'bet' fits the activity of trading perfectly. Anyway, there are plenty of other threads out there discussing this topic ad nauseam. You using any funky MM techniques for bet sizing?

My thanks to the folks who have responded but this is all pretty standard stuff. I am familiar with and have used all these methods in various incarnations. I'm just curious to see if anyone out there has any really far-out methods which are not in the textbooks.

From the OED: Bet • verb (betting; past and past part. bet or betted) risk money or property against another’s on the basis of the outcome of an unpredictable event such as a race or game. Looks like a pretty accurate description of trading to me. :)

Why look who it is! :) Take care whereever you're off to and drop us a line if you decide to come back to ET. And either sort out that insomnia or start spelling "thru" properly. :D

Not much time for me For the moment to be Reviewing the charts And digesting the parts That I need to see To evaluate bee As the day job is filling And I must make my shilling Return I will soon Once my workload I prune

Just interested to see what methods people use to calculate their maximum bet size. I'm guessing most people use the standard methods - fixed capital amount, fixed capital percentage, fraction of optimal F etc. However, since all these methods have well documented downsides and can be fairly...

nyse, rn, jim2k, tape...please continue

If you really want to crack the pdf, I can also do it for you. Just send your bank details to me, I will crack the password and send it back to you having emptied your bank account. We also can break any Vista, XP Windows, and XP Pro password on any laptop and will take the opportunity to...

Oh yes I do know Of the box that must show But just thought I'd ask Before beginning the task Of some moody observing If whether the curving Of the wriggly worm As it twist and it squirm Might just suggest If we be blessed That some stops might be run To start all the fun Cos the...

Been thinking have I Of what I do know So what thinketh do you Of the MCO?

Your words speaketh clear To a head full of beer Of that I amaze For all else is a haze So thinketh I must Or else I be bust Mr Aws will attest Maybe backwards is best :)