Search results

Do you have a better approach than Kelly? I would be very interested to hear. It’s a nice problem to have! Being faced with a 60% probability bet and not knowing how big to get. Most of the time I am faced with marginal bets and use small sizing as a default. Even with my ‘compelling’ trades I...

Perhaps I can be slightly clearer in my comment. Betting on a coin with a 60% probability of coming up heads, you should bet 20% of your bank IF you want to maximize returns. This isn’t my analysis, this is Kelly. I understand, for many reasons, a trader may not want to maximize their returns...

If I had a coin that came up heads 60 percent of the time, how much should I bet?No more than 2% of Total Liquid Net Worth (TLNW) This is not a good answer. If I had a coin that gave me heads 60% of the time, I would be betting huge, 20% each time, to maximise my returns. Such a trade is gold...

This is a great topic, I hope it doesn’t die prematurely. Thanks for starting it Lukas, and thanks for your comments about your rules. Well done for ignoring Gotcha, who had nothing worthwhile to contribute. I think time stops is a worthwhile subject for newbies and experts alike. Their use is...

Thanks for your comments, Xela. Much appreciated. I still see a disconnect though, between Brooks being a vendor like anyone else (albeit with poor writing skills, an unfinished system, some devoted fans, and success in another field) and the amount and bitterness of the criticism I have seen...

I was really excited when I saw the title of this thread. Unfortunately, reading it top to bottom reveals that 90% of it has nothing to do with the question. Trading Records – the constant criticism regarding failure to provide trading records is quite tiresome, both here and in other threads...

The instructor is most likely telling you that 1% is the maximum loss you should take on any single trade. Its not bad advice. Many books mention a maximum of 1-2%. I think it also depends on account size. If you have a $100k account, then $1,000 is a lot. I would suggest starting small, just...

If we can forget for a moment that OP is an experienced swing trader, can anyone help out with the other part of his question, on learning how to day trade? I would also be interested to hear about what anyone can suggest to learn more about this. Is there one book that stands out above all as a...

I would suggest you do it. The most important thing is motivation because its a lot of work, so being very interested in the subject matter is a great start. When I did it I couldn't wait to open the books every night and learn, even after a full day of work. Many people recognise the hard work...

Hi apo99, Welcome to ET. I am a newbie here aswell. I have worked in L/S fundamental equity for the past 10 years, but am having a break now, and testing a few ideas I have to see if I can trade them full time. I like your response to all this forum's negativity. It shows maturity. So far I...

Q1: Yes. First comes 'Consensus EPS'. This is the average of all analysts, for a given reporting period, trying to forecast the company's results. Q2: Its usually 2-3 years. Sell-side analysts typically model ahead for 2-3+ years. As time goes on, more analysts will compile estimates and more...