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Hi crayon851, it seems to me the session is proceeding fine, according to plans. We have been keeping a constant upward "drift" ((G-L)/L in the range 7-10%), accumulating about 10K of gains, at the same time the unrealized has been contained within a decent range. To keep it that way it is...

Sure. Here is a summary of the latest changes to games, to make their setup more intuitive for a fund manager. While at earlier times, I was differentiating between "scalping" or "hedging" entries only, now the classification is slightly more articulated and goes like this (terminology is "made...

@monkeyjoe <b>>So, to paraphrase and make sure I am interpreting your explanation correctly: 1. remembering the stops is an improvement over a naive strategy that forgets them 2. it is ultimately the scalping/hedging game rules that determine the edge</b> It sounds good. I'd just refine a...

<b>> I still don't exactly understand the source of dominance and advantage from having the players "recycle losses", or of remembering the stops. </b> That's the same thing: you "remember" in order to "recycle". It should be clear enough that if you have 2 situations: - stop and "forget" -...

As I already said, your problem is that you are not getting what is being explained. Not even a small clue of light so far. So, your vote is about your wrong understanding, and, in that sense, it is correctly 0, in the given scale. Also, in case you did not notice, we never used futures so far...

It's probably a good idea to post another quick "flashcard", with a synopsis of some key ideas I have been proposing and explaining here. After all, it's probably easier to look at pictures than to read posts, and flashcards can also serve later as quick remainders. <img...

Thank you DR.BOUYE, It is always useful to have the opinion of a "doctor". Unfortunately, I need to inform you that the very mention of "grid trading and mean reversion" in your post just means you have understood nothing of what I have been saying in this thread and especially the "Trading...

Hi jb514, that's a pretty tough discussion :-) I am not sure I have enough experience with options to really contribute, as I tend to use them mainly for hedging purposes, to argument in favor or against of the analogy you propose. Certainly it sounds pretty suggestive. At a very superficial...

@monkeyjoe <b>> The only reason I was looking at the actual short-term PNL as an indicator is because of the high volume of trades</b> "high volume" is a relative concept. "high volume" respect to what ? It does not seem "high volume" to me. Actually the trading pace in this current session...

The mechanism is actually not difficult at all to get used to, once you see it in action before your eyes and play for a while. (Now I would not even be able to trade otherwise.) Clearly, you must <b>abandon the perhaps more natural perspective of trades, made one at a time (non-overlapping), in...

That's right. This has been a many-year journey and, as you rightly recall, I have also been testing and "tasting" :-) to what point we could arrive without hedging. Even now some people testing the app are tempted to avoid hedging, lured by what can appear initial quick gains. I try to warn...

Hi monkeyjoe, interesting question, as it opens to an area I have not touched so far yet, to avoid confusing ideas at this stage. That is the simulation facility to study and analyze the "games", prepared by the user. First of all let's say one important thing. The simulation facility is...

End of week. Here is our update. Everything proceeding fine so far. We have been steadily growing the "G-L" figure, doing some a decent job with hedging the unrealized (max margins usage has been around 30-40K for this instance). Probably, there is still room for improvement of the sizing...

Hi jb514, There a something interesting in what you say, as the "loss recovery mechanism" (what I call "the conservation of trading information", which essentially is responsible for the upward drifting of the "G-L") could also be intuitively seen as an artificial surrogate of options (without...

Yep, Mo06 it depends on who is doing the trading and how. Personally, to me it is a scientific endeavor. Of course, I have no problem conceiving that to other people it may be something else, gambling included. (Not to mention many other activities related which are not legal, like scamming...

Let me post a quick "flashcard", summarizing my view on strategy evaluation. <img src="http://www.elitetrader.com/vb/attachment.php?attachmentid=143925&stc=1&d=1394185556" /> I am pretty sure that many people looking at it would say: So what? this is obvious. However, my personal experience...

Nope, no offense taken at all. (Incidentally, we just started a 10M fund based on this, so I don't need much more professional gratifications, or a unanimity of people supporting my views. Instead,) having the chance to clarify and address any misunderstandings and possible criticisms is just...

@monkeyjoe <b>>I infer the approach is not making money because the liquidation PNL is negative</b> I am not aware of legal trading methods whose PNL is systematically only positive. <b>> Didn't the PNL on the prior live trial also go negative because of big drawdowns before you pulled the...

@monkeyjoe > I think the main problem is that you have convinced yourself that the players waiting around for mean reversion > I doubt the widely available scalping and correlation indicators you use are themselves a source of edge > you have fallen victim to this hidden assumption of mean...

Situation update. Still scalping/hedging quietly. TNA has been running away a little but also hedging. I have installed the last update of the application, with some improvements in the game rules. <img src="http://www.elitetrader.com/vb/attachment.php?attachmentid=143792&stc=1&d=1393972188" />