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Your candidness and insight are truly appreciated... It's amazing how it sometimes seem as if the market knows your stops and targets... btw, how many ticks before you move your stops to b/e? thanks, Walt

thanks Prop... Do you know of a Trading Chat Room for traders with statistical arb m/m ideas to bounce off each other and to collaborate? thanks, Walt

Hey Prop, When you say "vanilla market making on stat arb books", are you referencing Pairs Trading based on intraday support resistance levels with the pairs? Walt

Before I share that information, I need to check with the firm to ensure that it's o.k. to disclose that information about them. Walt

There are prop firms that allow traders to enter sub-penny orders. Folks who trade retail are at a disadvantage. It seems that the complaint against sub-pennying, especially from prop traders, are misleading. However, the retail traders certaintly are warranted with their complaints. Walt

thanks Jonny, I'm really starting to be convinced that the best way to play mean reversion is after the pair appears to have reversed upon reaching or coming close to its support/resistance levels; otherwise it becomes a "catching a falling knive" situation, which gets potentially worse on...

Lescor, I'm not sure if I understand the problem. Are you saying that you are not getting a lot of opportunities to trade because the stocks on your watch list or filter is not hitting the std dev trigger points? I figure that must be the issue, although volatility has been on the rise with...

Matt, Are you still in the Stat Arb arena? thanks, Walt

Hi Jonny, Are you a divergence or mean reversion pairs trader? If both, what do you use as a basis to switch from one style to the other. btw, I think I'll order the Pair Trade Finder software. Does it accomdate both divergence and mean reversion strategies for pairs trading? thanks...

thanks for the feedback, Dustin... I guess I just need to develop better entry points and risk:reward profile. I would have been stopped out of the DAKT trade, as I would have only risked about 5 cents or 10 cents for a breakout. I would have gone long at about 8.95 and covered with a loss...

Hi Dustin, I for one, appreciate such fundamentally sound advice; however, how do you mange "fake breakouts"? Many stocks with volatility and unusual volume will start off as strong or weak, but subsequently reverse its direction for the day. I guess strategies, such as buying strong...

appreciate the insight... What are your thoughts about the caverns being bought and used for storage by firms such as Centaurus/John Arnold? I believe it's been reported that John Arnold has spent more than $100 million on caverns for storing gas. thanks, Walter

You're kidding with me, right??? I'm sure you know that a split or reverse split is capital neutral. Therefore, it would have no impact on the p&l of a short or a long position. I'd like to give you the benefit of the doubt... Perhaps I'm misunderstanding your point and someone else can...

The benefit of the leveraged ETFs over futures resides in the decay over time associated with the periodic rebalancing (I believe that it will be going from daily to monthly at some point in the future). This legislative mandate will weaken the edge associated with trading leveraged ETFs...

I sent you a PM...

Would you mind giving more information on those percentages? Based on my cursory review, on March 1st FAS was at $25.27 and FAZ was at $17.48; as of August today (about noon-time) FAS is at $19.22 and FAZ is at $15.83. During this interim (from March til now), the sum aggregate of FAS & FAZ...

Is this still a viable strategy... It certainly has died (on several levels) in 2010?

thanks for the posts, Erik... your insightful contributions are appreciated. Walter

Hi Don, Regarding the "top people (some who had fewer than 7 losing days this year..)" you referenced below, what type of strategy do they use, are they pair traders? Also, what kind of risk:reward are such traders experiencing. Given the few losses, either they are infrequent traders or...

thursday was a good rtm intraday if one waited until stocks moved about 3 std dev before fading the stocks; however, if one began fading the market before 11:00 am est, it was a very difficult day for rtm, as most folks focused on capital preservation would have booked their loss long before the...