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That's what I've been thinking about for a long time but never dared to check out thoroughly since you were so against trading the market character :D You wrote: "Once you've traded with an edge, you'll never settle for trading with character of market again." Why is Doron needed? What does...

acrary will not disclose anything, forget about it. There are just too many variables to know what he was talking about, all we can do is just guess but that's pointless :) I'm referring specifically to the edge/non-edge trading. His multiple systems weighting stuff is quite basic and can be...

I could try this experiment too. But there's one thing unclear to me. There are average winning trade and average losing trade sizes specified. I bet he assumes normal distribution, this means you need to know standard deviation to simulate these variates. I'm quite sure deviation doesn't affect...

I can't understand one small detail in the report. I've seen it in the "systems development" thread too. The report at the bottom says: "Expected outcome 346,190.63" Shouldn't the expected value be at the 50th percentile of sorted Monte Carlo simulation results? It's "50% level...

Thanks for posting these. Been looking for them. Not that they are very useful but I'm sort of a fan of that guy. What's really useful from the whole "logical trader" stuff is that it's quite important to have reference points on the chart. Without them the market just looks like messy random...

Yeah right :D Come to Lithuania. We have prices and taxes of a prosperous country and wages and crime rate of a third world country. We're right here, in EU. Come to us, if it's so bad in Britain :(

I guess the reason is that it amounts to enormous amounts of data. It is 3-dimensional data, i.e. the 2-dimensional chart is continuously changing as the time goes by. And this information is useless to the general public, that's why I think it won't be published on yahoo finance.

Look, don't take this personally. I have absolutely no interest in offending anyone. I agree on the part that the guy was reckless and made dumb decisions. As Scott Adams observed: we are all idiots most part of the time. The fallacy is in the fact that had that guy succeeded you would be...

This so much reminds me of the "Historian's Fallacy", as described here at #5: http://www.cracked.com/article_17142_logical-fallacies-5-ways-common-sense-screws-us.html :)

Even if there were many users, is there any reason why this should work?

From the performance reports looks like a break-even idea.

Also, if I'm not asking too much: are searching for trading strategies and finding optimal diversification mutually exclusive processes?

Thank you very much Alan. That cleared a lot of things up. A very interesting post. One thing I couldn't understand though: what do you mean by "optimal pf"? Is it optimal profit factor? Does all of this also mean that models based on market character is enough to make consistent profits...

Hi Alan, Almost 8 years passed since you started posting on this site. Has anything changed dramatically during those years? Do you still use the same old edge test or have you moved to something more advanced like self-adaptive artificial immune systems or something like that? Is it still as...

Yes, sorry, it's just a matter of definition. "Trend model" would be a more suitable name for it.

Hi, I would argue that the sail boat argument is not appropriate in this case. The problem in trading is that trends occur randomly. Therefore you see them only after the fact, when opportunity is already missed. Every time I developed a trend following system that used some sort of trend...

Most likely that will never happen. The blog seems to be abandoned.

What a load of bullcrap :D

The catch is here: if you have $100 and reserve requirement is 10% then you can lend $90 then, if the $90 that was lent is deposited back in your bank, you can lend $81 more (etc. but two levels is enough for this example). that's how $100 initial deposit turned into $90+$81=$171 but the...

http://www.youtube.com/watch?v=2-BZfFakpzc