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Always a % of what is at risk. You could be trading futures with 20% down , i.e margin amount or stocks, 100% margin and the only thing that is common is the risk needs to be dealt with according to your $ risk in each trade.

I backtested a long only system where the linRegSlope was > 0 on a 50% margin account on SP500 equities from 1965-2005 and the return was 27% and the drawdown was 63%. I tried using it as a sell or short indicator linRegSlope < 0 but it didnt work out well. This is for EOD trading. I...

i got your back babak :)

Is it kosher to post your returns for various strategies youve used in your trading? If your going prop, you might as well post past P/L, % return on capital, etc. But maybe its just me. Thoughts on this anyone? Eric

autocorr, are you the same guy who said you couldnt beat the index? I guess if you return 8% and the drawdown is 2%, then ya the dd is only 15% of the return. But you could in theory leverage the crap out of your system, providing a 20% dd and 80% return. But then , your arb could blow up. Test...

those odds are for each individual trade. You can have 6 or 7 overleveraged losses in a row and then you'd blow up. Happens all the time. Like guys who trade futures with $5k accounts. Or daytraders trading 10000 shares of stock XYZ with a $5k account and it gaps down or up 50 cents. Seeya

Lets say most of you are joe average investors who follow cramer. You have $10k in the account and use a discount broker. You take a position of $1k , not any larger than 10% to reduce risk ala Cramer. Round trip, your looking at $25 in +$25 out + slippage to trade one of his picks. Thats 5%...

Remiraz, It took me a couple of minutes to think about this and then I realized. Isnt the house edge more like noise than an edge? Or do you think its best to call it an edge? Im sure this comes in handy when developing high frequency trading systems.

Speaking of bet size, how many traders code pyramiding into their strategy and do they find it makes them that much more profitable? Its like the old turtle strategy going around. The only way some of those guys code have got big numbers every year was by pryamiding their positions up...

Babak, I could care less whether you believe me, my point is that its a funny post!

I was querying hedge fund jobs and this is what popped up! Too funny http://www.craigslist.org/about/best/nyc/63231291.html

Thats 2% per day, ever consider compounding that. Wasnt aberration the big futures system touted for the longest time? I think it has an annual return of like 25%. Not that great.

Amibroker. cheap, easy to use, can be used in commodities, futures or stocks. Supports portfolio level backtesting. i.e multiple stocks, different position sizes and strategies, multiple contract support in backtesting, I can go on.... Eric

I just bought it. Its probably worth it, should pay for itself with one good trade in my mind, good resource to have I think. I got the 5yr subscription deal with it for an extra 100 bucks. Beats trying to read the issues at the book store.

I havent gotten any at all Odd , starting on it as we speak. But apparently for some types of traders / info providers, collective2 gives them enough for an income.

What im doing, and it may be somewhat backwards is posting all my trades to collective2.com . I can then charge people per trade if profitable. It seems this could be a way to distance myself from systems sellers, produce a high return, which is audited by collective2 and could constitute a...

Lorn, where does it say that Sprott charges a 20% management fee, this info is correct for their precious metal gold fund. Management Fee 2.5% annual Performance Fee 10% of excess over S&P/TSX Capped Gold Index

Sounds to me like the arb edge is dead. Merger arb especially. Leverage 10x so you can turn your 1% edge into a strategy, and then get run over by a truck when a 1973, 1987, 2000 comes.

autocorr, learn to trade a good system and all that will become irrelevant.

FredBloggs awesome post, and I even own the book myself, couldnt have said it better. I was hoping for a dynamic position sizing algoritm or stop method, fractal style. No such thing here.