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From time to time, I think about about answers and analogies to this question: What is a great/perfect trade? If I have to picture it in my mind, what would be its attributes? Do you have answers to this question? Do you ask yourself similar trading questions,and if yes could you give examples?

Tell me about the efficient frontier and the filling of the knapsack problem mentioned in another thread? What is the objective function, what are the constraints?

I believe that could be worthwhile, but I would not publish the book. There is no contradiction in the two.

In trading one may lose not only his time, but also lose money trading his time. I do not know of any other activity that is similar to trading.

I agree Ammo. Could you update your VIX chart. I like that chart of yours with two humps.

Hey Mav: I knew you were around. Did you trade the models by any chance? If you did, you have to disclose it, because you are not supposed to. What happened the the trading account. Did the partners open one? I thought you were one of the guys who seem to think that what is needed in this...

QQQ @84.85. +0.11. Drawdown:0.11. RR=+1

Take the example of George. I would bet he is a lousy trader, or not as viewed in the mind of the people. But his traders on the other hand must be good.

Money in their account should primary. You discussed the reward, what they see is the loss from their account.

Trading is not like all jobs. It is not even a job. It is unlike all jobs. At best, trading is a zero sum game, one cannot monetize his work and time. If you are making money, I would bet that you have large capital and you hold long enough which makes you an investor. Trading has some...

Jack gets his fairy books sold, the guy mentioned inside gets calls to manage funds, and the reader gets the other end of the stick.

Weight and fat are not the same thing. Majority of people have no idea how to lose fat (and keep muscle), and do not make the difference between losing fat and losing weight.

I am wondering what a financial backer or a client of a proprietary trading shop would think after reading this journal, and particularly if his manager/trading guys/OPM backees are also in this forum.

DIA @ 157.47. +0.39. drawdown=0.01. RR:39/0.01=+39.

DIA @ 157.85. Model xx. Short size 1/16.

qqq@ 84.96. Model xx . Short size 1/16.

Seems correct, but make sure each trade is equal size, or adjust to same dollar amount. If size changes, say so and report numbers with and without adjustment.

Pick a calculator and check what is 2% a year of 1billion, and also what is 20% of say 60% gain in a year (doable via a good year(by luck) and 2 as leverage). How much would the manager make, and how much risk did he take? Risk is easy: it is zero. The point of the post is not the numbers...

The part that relates to trading: have you heard of the black swan? Not the one delivered by markets. You could also deliver a black swan trade to your other side, assuming the other side is not aiming at delivering one to you. If you want to know an example of those: there was a guy on...