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Here are twenty five such plots, at progressively greater magnification. Convergence is slow: a million hands gets you two, but not three, digits of accuracy.

One place that opinion is put forward, is Howard Bandy's book "Quantitative Trading Strategies". As part of a discussion of this book, I prepared the chart below. It shows a simple 3-moving-average crossover system with an ATR-based stop, applied to a portfolio of 60+ futures markets. The...

Random sampling experiments are notoriously slow to converge and thus require a huge number of datapoints to produce reliable results. In this particular case I recommend you generate AT LEAST one million random trades before drawing your conclusion. Fortunately this is easy, you just tell the...

Define two parameters: trade duration "D" and between-trade duration "B". Look into your heart and ask, what values of "D" are so ridiculously unsuited to my personality, that I would never NEVER trade a system with that duration. You might decide that you would never deploy a system that...

Phil Hellmuth gets knocked out of a lot of poker tournaments by "idiots" whose "stupid" plays are "unbelievably ignorant", as Phil puts it. Sometimes he loses but it's never his fault.

Yet another laugher from Phil in the Dallas Banjo Band. http://users.skynet.be/pdauwe/ursula_martinez.wmv Old effect, old method, new presentation, excellent misdirection. Find the textbooks of the craft (or their websites) and look up TT .

Find some automated systems trading contests (such as http://www.elitetrader.com/vb/showthread.php?s=&threadid=112509&perpage=6&highlight=ea%20and%20contest&pagenumber=1 ) and make job offers to the top 25 finishers. Of the 25, one or two will be interested in the job, and geographically...

anybody else got any postions? Yes: Milk: Flat Butter: Flat Feeders: Shorted on 05 Dec 2007 Live Cattle: Shorted on 03 October 2007 Hogs: Shorted on 22 Feb 2008 Bellies: Flat

My friend Phil in Dallas (2nd row, 3rd from right (photo) ) is dismayed by the choices in the Texas Democratic primary today. "One of them is a Nut with two boobs. The other is a Boob with two nuts."

If you open an account with more than $1.5 million, every broker will gladly pay you interest on the cash balance, so you don't need to fool with T-Bills. Typical rates paid are (LIBOR minus 25-50 bps) or (EONIA minus 25-50 bps). You may want to put some of it in another institution in case...

When the Crude-to-Gold ratio (Price of Crude Oil in Dollars Per Barrel) / (Price of Gold in Dollars per Troy Ounce) exceeds 1.25, the stock market will go down. That would mean the average American would be spending 50% of her income on gasoline. By "average American" I mean someone who drives...

What a shame the CBOT delisted the Muni Bonds futures contract. Wouldn't it have been a joyride, from August till now?

Perhaps if you are getting raped by options market makers, the best plan is to become an options market maker yourself. Just get the license and rent a badge. Now you will be the one making outrageous profits off the spread. Sweet.

Around 1% of average daily volume. So if you're trading the stock of Cisco (average daily volume = 68 million shares), you could take position sizes of about 680 thousand shares without having huge market impact. If your stop is 4 points away, you could risk 2.7 million dollars on a position...

King James bible, Matthew 7:7, says: "Ask, and it shall be given you." http://tinyurl.com/28mfss

You see "Trends" in Randomly Generated Data. Don't feel bad, so does Burton Malkiel (ARWDWS chapter 6). Mark Brown sees "Trends" in rolls of the dice (link1) and in spins of the roulette wheel (link2) Me, I look at price charts of commodities and sometimes I see "Trends" too! We're all...

Keep reminding yourself "I need a factor of 60 speedup". If you get a factor of 20 from faster hardware (which would be a miracle), you still need another factor of 3 from faster software. Perhaps this book might help in some way: http://tinyurl.com/2dra4f

Is it correct to say that your code needs to be sped up by a factor of 60? (needs to run in 1 second, actually does run in 60 seconds). Factors of 1.3 are easy to get. Factors of 2 are possible. Factors of 4, maybe. Factors of 60? You need a new algorithm.

Since you are a complete beginner you will want to start with books written for complete beginners. http://tinyurl.com/3yo74x and http://tinyurl.com/3dvxcc will get you started. These books describe all of the basic option trading strategies and tell you the ideal environment (high...

If you're interested in futures, there are some vendor-sold mechanical systems for trading futures that use pivot points. All of them are progammed in Tradestation. A representative example is "Trend One" by PWA Futures. They track its performance in the Futures Truth newsletter; it hasn't...