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Why not experiment with the idea of adding a directional bias to your trading? Selling strangles (sell DOTM call and also sell DOTM put) is nondirectional -- it gives you a psychological crutch, allowing you to proudly boast "I don't know which way the underlying is going to move and I don't...

Perhaps your numerical results might improve if you added a trend filter which prevents your strategy from buying stocks that are in screamingly obvious downtrends. Or perhaps an overbought/oversold oscillator could help you identify situations where it's beneficial not to take the trade...

Businesses hedge their currency exposure; individuals can do so too. If you think US stock ABCDE is going to have the largest percentage move of any stock you know about, it is possible (easy) for you to do the following:Open a Forex trading account at Oanda or one of its bretheren Open a...

I recommend you obtain high-end backtesting software and begin to study.

I find it tidy to use a functional definition: "ethical" == "legal". What is illegal is unethical, and what is legal is ethical. By definition. Now the answer to "What is the Ethical Limit to Personal Wealth?" is simple: the ethical limit is the legal limit. Which, in the year 2007 is, in...

here is the spreadsheet used to make the plot; beware, it's 680 Kbytes.

I recommend you obtain high-end backtesting software and begin to study the relationship between "Expectancy" and "Overall System Goodness" as defined by You. You may find, as I do, that Expectancy is a very poor predictor of how well you are going to like a system's results. In fact you may...

Why not do the experiment right now? Make some trades and observe what slippage is actually experienced in real life with your actual orders (not theoretical approximations) and the actual market behavior (not a theoretical approximation). Maybe the situation is better than you imagine, due...

Of course this would drastically reduce their allocation to Renaissance, AHL, Tudor, Winton, Soros, Sequoia, Kleiner Perkins, et al., who would tell CalPERS to pound sand.

The probability that someone will make > 60% per annum profits trading stocks unleveraged, is greater than zero. The probability that one or more trading systems exist which use weekly data and will make > 60% per annum profits trading stocks unleveraged, is greater than zero. The...

Some technical trading systems use indicators (rather than prices) to determine when it's time to exit. For example,Enter long if (RSI(14)[yesterday] < 20) AND (RSI(14)[today] > 20) AND (ADX(14)[today] > ADX(14)[yesterday]) Exit long if (ADX(14)[today] < ADX(14)[yesterday]) Systems like...

Finding a lawyer will take 8 hours of your time (including checking references). Cost to you: 8 x $200 = $1600 Asking a lawyer this question and listening to her answer will take 2 hours of your time. Cost to you: 2 x $200 = $400 The lawyer will bill you for her time. Cost to you: 2 x...

Here's a bit of data on Scaling Out. It's a backtest of a mechanical trading system operating on a portfolio of 90 futures markets, without Scaling Out (labeled "BEFORE") and then with Scaling Out (labeled "AFTER"). The system is fairly long term, holding positions for several months...

If you give the wrong answer to this question, they will escort you out of the building at 9:45AM. Have you ever heard of these books? (book1) (book2)

http://www.elitetrader.com/vb/showthread.php?s=&postid=1096266#post1096266 Was gibt es Neues?

http://www.cme.com/trading/res/te/2007columbus_day.html

What about blind people?

Super Turtle by Murray Ruggiero. He is not shy about touting Super Turtle right here on ET. http://www.elitetrader.com/vb/showthread.php?s=&postid=1267239&highlight=Einstein#post1267239

Please explain further. Do any of these statements have the same meaning as yours?The system "Trade what you see" works, and there is no other system anywhere on earth that works If anybody claims to have a profitable track record trading any system other than "Trade what you see," they are...

I enjoyed the attached .pdf presentation by Cohen of the Harvard Business School. Slide 5 (reproduced below) is apropos of this discussion.