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Looks great. One question - when you hold overnight, do you reduce your position size compared to intraday trading?

I believe both commercial and investment banks have proprietary trading arms. Are traders working there called prop traders, too? Anyway, how are these traders paid? Do they have base salary and performance bonus, or are they paid only their profit share like those at prop firms? How often...

I'm sure it's different from prop firm to prop firm, but what's the standard practice? My guess is semi-monthly or biweekly, but can anyone confirm? Are there prop firms that pay monthly?

Is it because it often gives you a number larger than 2%? Any suggestions other than optimal f/secure f?

Thanks, your formula seems like what my book calls the secure f, a variation of the optimal f which I have in my original post. The book says the secure f more accurately estimates the optimal position than the optimal f because it takes into account the drawdown, but does not elaborate much...

Are you sure this is true? This example says to multiply the trading capital by the optimal f to determine the optimal position size. http://www.dummies.com/how-to/content/the-optimal-f-money-management-style.html

I'm using this definition of the optimal f. optimal f = (percentage of wins * (profit factor + 1) - 1) / profit factor According to this, the optimal f will be zero or less if the percentage of wins is less or equal to 1 / (profit factor + 1). If I use the optimal f for position sizing...

I noticed that most backtesting examples use $100K for initial capital, but doesn't it invalidate the test result? Most of us do not have that kind of money, much less committing it in a single strategy, so we will use a much less amount in live trading. The problem is that many position...

It's not what it's really worth, but what its perceived value is.

Thanks all for your comments.

By a reserve fund, I mean the money you put aside to replenish your trading account if it goes below the minimum. For instance, many day traders start each day with the same amount of money in their account, regardless of how they did the day before. When they lose, they need to move money from...

Quite surprisingly, this is an independent film. Assuming it had a very low budget, I think the director and Kevin Spacey are very close friends or the director is a prominent figure in the industry.

Who cares if the U.S. hits the debt ceiling? They will just change the rules. The U.S. still is spending more than it produces. The super rich have never been better. Where's the money coming from?

What exactly is intraday swing trading? How is intraday swing trading different from day trading? Thanks.

What you're looking for is a prop firm that requires security deposit. Some provide training and basically you use the leverage they provide to trade and you will give them a cut if your trade is profitable. Go to the Prop Firm forum for more.

Thanks all for your answer.

I have an individual account with Interactive Brokers and want to start each day with the same amount in my account, say $30K. If I have 28K in my IB account, then I want IB to request a transfer from my bank account for 2K to make it 30K. If I have 33K, then I want IB to transfer 3K to the...

I might not have been clear enough in my earlier post. Going back to my previous example, once you go from 50K to 55K, you only trade 53K, but you don't stop trading. If you make another 2K along the way, you continue to trade only 53K, with 4K "reserved". On the other hand, if you lose 5K...

Suppose you're a day trader with $50K in your account. You have a couple of great trades and made $5K by noon. Would be it a good idea to lock in some of the profits by putting some of $5K aside and not re-investing it? Basically, you'd pretend that you only had $53K instead of $55K and trade...

Whoa, $10K! Do they let you go if you lose more than $10K then?