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Excellent post. So ... Precisely defined algoritm = mechanical trading strategy ; Loosely defined algorithm = discretionary trading strategy.

This thread illustrates why I have worked hard to get a mechanical trading system. With a discretionary strategy, some will get it and others won't. That's a recipe for a lot of drama. Trading is hard enough without a lot of drama layered on top. Thanks to all who gave informative feedback...

DB should be obvious. BMT = Big Mike Trading, another trading forum. SLA = Straight Line Approach, dbphoenix's take-off on the Wyckoff trading method. DB wrote a series of threads in the Journals section entitled "If you can draw a straight line ..." (then you can learn to trade.) The first...

What are the basics you refer to?

So this makes the method sound discretionary, not mechanical. That would explain why some had difficulty making it work.

Just read where dbphoenix was banned at BMT earlier this month for allegedly being a vendor. The charge seems bogus because the alleged book he was accused of selling (at another trading site !) was never being sold at Big Mike's. Regardless, leading up to the banning were accusations that SLA...

Threads. Here's the latest: http://www.elitetrader.com/et/index.php?threads/a-new-kelly-formula.291307/ And if you need background on the Kelly fraction, look up the "Kelly for traders" thread. Time for you to get comfortable with the search pages, young'un.

Not just semantics. Why look at risk without also looking at reward? Starting at a position size of zero (percent of your trading acct), your risk is also zero. As you gradually increase your position size, yes your risk increases. But so does your reward, assuming your timing strategy...

Instead of guessing what leverage you should use, try optimal position sizing: http://www.elitetrader.com/et/index.php?threads/a-new-kelly-formula.291307/

Yes, that is so. We're not talking about money mgt (MM) in finance, we're talking about MM in the context of trading. The phrase comes from the world of professional gambling (specifically, blackjack card counting), where the phrase "money management" absolutely and unambiguously means bet...

No, not "lots of stuff" in a trading plan. A basic trading plan has three components: entry strategy, exit strategy, trade sizing strategy. That's it. Risk management aka money management is the trade sizing strategy. Also known as position sizing. Discipline is not a part of the trading...

So because some were fuckups, they're ALL fuckups? Yeah, there's the klan "logic" I'm so familiar with. BTW, the first passenger to attack the terrorist on that train, and the one who got shot, was French.

Exactly. This guy used to be in the sponsor list below but he hasn't been there for some time. Exactly what is he selling? Mentoring? Signals? A system? Who knows?? Most of all, who cares (given this level of incoherence)?

Why am I not surprised even this p&r thread would turn into a bigot fest? This time, against the French. You klan bitches just can't contain yourselves.

Exactly. This point-drop obsession is entirely media-driven. It's ridiculous.

Seriously why does anybody care about point changes? It's percentage changes that count.

What's hilarious is the idiot who keeps posting "Black Monday" threads was a no-show. :D

Economists make entire careers out of "explaining" what the market is doing, has done or will do. Yet few of them can trade worth a damn. So knowing WHY means little or nothing. Knowing HOW to deal with what has happened is the whole ballgame.

Yes. Seriously.

Long-term trading appears to be more profitable overall. LT trends are more dependable, ST trends are subject to more chop and more randomness. Not sure increased frequency of trading makes up for this in the short-term. Certainly less stressful trading eod than trading 5-minute or 10-minute...