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Amazom.com for Books => " Market Neutral"

The very first condition (for a random-based system) is we would have to accept : http://www.elitetrader.com/vb/showthread.php?threadid=70794 :D

Here is my guess: http://www.elitetrader.com/vb/showthread.php?s=&threadid=70673&perpage=6&pagenumber=10 Of course, some conditions would apply. :D

That's only after stopping out, isn't it?

Whether the 10 markets he picked had strong negative correlations?

Sometimes perception is reality indeed. Sometimes not.

Done. I'd better leave this thread to others now. :)

E.G. That is to say: Prediction is not necessary if targeting small profits, however it would be very important if targeting good profits.

I think many traders would have to constantly find out this kind of "magic" numbers.

I guess the importance would be having at least a little bit of luck periodically, besides some tools such as backtesting.

My belief and experience have been measuring edge should be aimed for facilitating adaptation to changes of market characters.

I fully agree. However, I also believe having edges does provide additional competitive advantages - meaning a potential for better ratio of "return vs loss".

Thanks for your revelation above.

Personally, I strongly recommend to do good backtesting - some Proper ones.

Just 2 cents: I believe we can find and see a large number of papers covering this and related aspects for trading, although not knowing how many of the writers are profitable traders, whether before or after writing up their papers. How/ why are we going to decide using the 70% for long...

Sometimes even worse, a truly good and reasonably profitable system is neglected. That evaluation can be resulted by probably due to lack of independent thinking and analysis, I would guess.

Probably that's why a benchmark for the market during the trading period should be considered/ used, I guess.

Q From an older thread - To determine if an "Edge" is real: Quote from acrary: I measure my edge by taking the trades and checking them versus random other possible entry periods given the same holding period. For example, if I have 50 long trades in a year with a one day...

My guess is if a trader's method/ system does not have any (trading) edge (including market directions, MM skills, etc.) against all other players, probably some of the above infrastructure edges would not help much.

I would think nobody should have any objection at all about there is a value chain connecting along an edge (an evaluation of whether to trade a system or not) and bank balance (the end result of trading a system). Thanks!