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Maybe it is not so much an issue of using something other than your 10 point "world has come to an end in my trade" stop - but rather money management. If you have a 10 point stop, then you have a stop. - Sounds obvious, but so far, most everyone here is arguing your use of stops or not using...

IB will have the VIX options starting on Monday.

could you explain this?

Yes, this is true, but then again... the VIX futures are based on the index also. From the CBOE website: VIX option prices should reflect the forward value of VIX, which is typically not as volatile as spot VIX. For instance, if spot VIX experienced a big up move, call option prices might...

The above was debunked on Myth Busters :D But the toothbrush in the bathroom is an issue!

When applying it to a trend following system: Entering 2 Contracts at trade initiation: Net Profit: $205,440 Max DD: $29,640 Net Profit/Max DD: 6.93 Profit Factor: 2.95 # Trades: 66 % Periods Profitable: 61% Entering 1 contract at trade initiation, 1 when trade becomes profitable...

I am getting different results that suggest building into a position as a trade goes against you is better. Perhaps this rule is system dependent? Using a contrarian strategy for range bound markets (sell on local maximums, buy on local minimums) I get the following results: Buy/Sell 3...

I'm actually looking into some of this myself and will PM you if I find any..

If you want to go the 'free' path, you might be able to get this from a university. Econ departments often have tons of market data that they have collected over the years.

it is cheap if the ideas are worth more than $2.5/idea. Pretty basic. But yes, I'm really not sure what you are getting at here....

Got it... the 'gummy' material was easier to digest then the wall of math in the other paper. It looks to me like this stuff would be very useful in pairs trading.

Could one of you here 'bite size' / explain cointegration for me? What is it used for in layman's terms? Granville

LOL :D

I think this needs to go on my wall.

IBj, I for one am interested in this discussion. A while back a friend and I developed an algorithm for trading open 'price discovery' markets (it was developed on Olsen interbank data). Ever since we have had a tough time finding a platform to trade from and right now we are looking into...

Could one of you explain this? Sounds like game theory in action.

yes, I see it. Looks like it does not refrence historical..only current bar. I will see how I can work with this. A common order for my code would be: "sellshort next bar at XYZ limit" and my concern is that many fills in TS would not be fills in the market.

For those of you who work with High Frequency systems: I am finding some profitable methods for currencies using limit and stop orders. The problem is that I'm using Trade Station and I can only see the bid and not the ask. How do you all deal with this? It is looking like I need to get both but...

I think +10%/Month is a bit excessive. I am -without a doubt- certain that it is possible. However, I think it is unlikely. Add in compounding and such a trader could buy all of Saudi Arabia's assets in a short decade or two. Maybe they have?

There is a book that describes some well tested stock investment strategies. They are quantifiable and tested over decades of market returns: "What Works on Wall Street" I have no idea what will work in the future, only what has done well over the long term in the past. This is where a...