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Makes sense to me. I think this is the difference between discretionary and mechanical traders, apparently to the point of noncommunication for some discretionary traders. Spyder, if you can't explain your method so clearly that a machine can do it, then it's discretionary, and no matter...

Incorrect. Thorp was first and foremost a college professor. It's publish or perish in his world. Second, Thorp didn't invent card counting. A rudimentary form of it was already being used by some professional gamblers in Las Vegas since the late Fifties. Thorp found out about it, and...

Oh brother. If somebody told you that your lungs were the least important organ among your lungs, heart and brain, would you agree to a lung removal operation? Think for yourself, not out of a cookbook. There is no "least imporant" leg of a three-leg stool, and there is no "least...

Awful example. MicroCrap's planned obsolescence of perennially shoddily designed software is not the image you want in your customers' heads for a standard of your software. Or is it? :D

Don't confuse a profitable system with a winning system. Some people have gotten the idea that just because a system ends up with more money than it began with, it's a success. But what about the buy-and-hold? For a system to be a winner, it not only has to make a profit, it has to...

The real problem with TA is a slew of halfwits and conmen who insist that they can substitute voodoo for solid mathematical reasoning. 'Twas ever thus. The very nature of TA makes it a magnet for sophists.

Read the next sentence I wrote after the one you quoted. If all you have are 30 trades in your backtest, it's a pretty weak backtest. In other words, you should switch to adaptive position sizing during your backtest at some point -- 30 is just a suggestion, not an ironclad rule. To give an...

Finally, somebody who gets it. :) Fixed-size trades aren't anywhere near optimal. They can't be rigged to even approximate optimality. Fixed-ratio, or fixed-fractional (if there's a technical difference between the two labels, save it -- it doesn't matter in the end), trades might be...

http://www.reference.com/browse/wiki/Truthiness :D It's easy to determine whether position sizing works or not, unless one is just too lazy to search the Net.

Before you condemn all of those indicators, find out if Aronson used a logical position sizing method in his tests. Almost no TA books even mention position sizing and even a few so-called trading books commit that mortal sin of omission. A viable trading strategy isn't just rules on when to...

Differential Calculus.

A trading strategy has three essential parts: an entry strategy (rule(s) for beginning a trade), an exit strategy (rule(s) for ending a trade), and money management aka position sizing (rule(s) for how much to commit to a trade). Some people here in ET think that a trader can shortchange or...

What he also didn't say was that for a real genius -- somebody not Thomas Edison -- "Genius is at least 50% inspiration and at best 50% perspiration." Edison was a drudge who got lucky more often than not. I love what real genius Nikola Tesla had to say about Edison: "If you gave him the...

"A DAY IN THE LIFE OF JOE REPUBLICAN" Joe gets up at 6 a.m. and fills his coffeepot with water to prepare his morning coffee. The water is clean and good because some tree-hugging liberal fought for minimum water-quality standards. With his first swallow of water, he takes his daily...

A nutjob looking for a new nest to foul. IIRC Barr was the first one to call for Clinton's impeachment, long before anybody in the media ever heard of Monica Lewinsky. Some wingnuts choose an agenda first, then look for justification, if ever, as an afterthought. Still, Barr is a far...

I think Cafferty is too smart to give airtime to David Duke in the first place. Blitzer, on the other hand ... David Duke is as newsworthy as John Mark Karr.

What's to debate? The Kelly ratio for trading has nothing to do with the St. Petersburg paradox. :p

Just when I think the Repugs have hit rockbottom, they always find a lower place to crawl. By now, I should know better. :D http://thinkprogress.org/2006/12/07/kingston-congress/ So having to work a five-day week is like torture for this whiny pampered crybaby of a khan-servative. Hell...

Kelly sizing -- as opposed to that "fixed fraction" crap -- is real-time-optimal, not post-optimal. Those who say something can't be done should stay out of the way of those who are doing it. :cool:

Yep. from the backtest: Total profit $ 13615410 Profit after subtracting $ 10.00 commission, slippage per transaction: $ 13615170 ... Initial capital is $ 100000 One share of BA bought 02Jan1962 would grow to 190.89 shares on 14Jul2006. So that initial $100,000 would have...