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A 2 pt scalp after a 2 pt trend seems to be a "bread & butter" (simple & effective) strategy. There are other filters and techniques to implement with this strategy to increase the statistical probability of success with a Trend Scalp... Walt

thanks... the way I view it is to compare the ATR with the price of the underlyer. For example, if the price of the s&p derivative is $1000, and the daily ATR is $10, then the ratio is 1%. Likewise, if the price of the currency is 1.5000 and the ATR is 150 pips, then the ratio is also 1%. Walt

Thanks for sharing da-net; however, how did you calculate the 40 pip daily range equivalency of the ES?? thanks, Walt

What Rules did They change...??

dozu is right on point... It all comes down to statistical probability. For some reason, an "edge" is viewed by many traders as some mysterious and cryptic code. It's all about statistical probabilities coupled with money mgmt. When your edge (i.e. statistically high probability event) is...

I'm considering creating credit spreads (as opposed to the debit spread parity) to insure against the spy or e-mini s&p... have you or anyone found material success with such a strategy (i.e. annualized return on capital > 50%) Or am I just wasting my time? thanks, Walt

K.I.S.S. --- simply fade S&R on a daily basis, using the ATR to determine the feasibility of the trade. Risk about 2% of capital per trade. Have an even or slightly positive r:r Walt

Excellent post... many folks have lost their "shirts" bettiing on reversion to mean between two pairs, when in fact it's better to simply long the strong stock and short the weak stock as a hedge. Many employ a layering strategy, which works until it DOESN'T!!! And when it fails, you lose big...

Do you know Don's Take Profit and Stop Loss amounts? Walt

Other than Pairs Trading and Dispersion Trading, I am hoping to begin a "think tank" discussion on the feasibility of various high probability trade set-ups... It's reported that Jim Simons, one of the best traders/fund mangers over the last 15+ years (based on his alleged performance - $3...

From $8Million to $3Billion in about 6 years... and not many folks even heard of him...

... perhaps just your 'run of the mill' Obsessive-Compulsive dissorder...

ABSOLUTELY INCREDIBLE!!! In his video he's absolutely dissapointed with his results from May... only $30K net profit!!! He mentioned that he's going to have to change some aspects of his trading, although he's still on pace to make more than $1M this year!!! I appreciate that kind of...

I stand corrected...

If Jim Simons, arguably the most intellectual trader/fund manager, doesn't attest to statistical arbitrage as a viable trading strategy, then who am I to go against the most renown mathematician/trader in the business... Walt

It certainly seems that the market is A LOT LESS VOLATILE from about 8:00 PM EST thru 4:00 AM EST. These wild swings during the daytime is untradeable... How's liquidity/slippage/spread during the overnight markets, particularly ES & YM? thanks, Walt

It would be similar to Bright's Opening Order strategy; however, instead of a contraian based strategy, it's a momentum based strategy. I would set envelopes, but as stop orders instead of limit orders. The idea is that if the market overrecated to earnings, and the price would reverse with...

Because of the wide bid/ask spread and the fact that the spread especially widens during news, I have no doubt that this type of strategy is more difficult in the forex market. With the equity market, I'm only trying to catch the momentum of the openings after the earnings were announced...

The idea is to jump on board and the "price screams" one way for a very short period. Is all about riding the wave...

thanks for your reply, Cash... I wonder why more folks aren't chiming in on the concept. It's nothing radical. It's based on the premise that short term price bursts occur immediately after earnings... Walt