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WFC does look like a thick stock, but according to my calculation from another system, it is still volatile enough. I am entirely new to scalping, deciding to take a look after reading something in ActiveTrader about leaning on a support or resistance. It seems to work, but I must say the...

I used to think that scalping is like jumping on and off the bandwagon while it is moving. How long do you usually hold a position? I have done some simulated trades, many of which last close to an hour. Even if they never trigger my stop, I have to sit and wait for the momentum to pick up...

You are the nastiest jackass -- worse than Batman.

I have written a program which looks profitable. Right now, I am talking with someone, a referral, about putting money to start an account. At first, I thought that it was a proprietary account for just me and him, but he actually wants to begin a fund trading my program. Problem #1: He...

I was told to not lose in a trade more than 2% or 3% of your total equity, but such a rule does not consider the effect of drawdowns. If the probability of a drawdown is small, perhaps I can risk more. On the other hand, if the probably is big, I should risk less. Furthermore, is there a...

I am using an Exel spreadsheet. It is not an automatic system, but for analysis purpose, it will do.

I understand that the greater the ratio, the greater it is. However, how it is an asset allocation ratio?

I am not too worried about optimization. When I change a parameter I will re-test the entire basket and look for patterns. For example, if I want to reduce the number of points in a MA, I will pick 60m, 45m, 30m .... If the aggregate improves, P&L(30) > P&L(45) > P&L(60), then I know that it...

I have tested my system against the Dow 30 and 60+ stocks from various sectors. The initial results are pretty good. I will test the entire S&P 500 next. Assuming that all goes well, what will be the next step? I will studied total return, shares traded, probability of a loss greater than...

Does any one have experience with the SPX volatility index, $VIX? I am wondering what sort of strategies are out there.

I have learned one thing while writing my trading program. The success of any set of parameters depends on the underlying security -- stock in my case. How do you decide whether the system legitimately works for a particular stock. More importantly, how do you tell that the system no longer...

I am researching on some thing very similar. Rather than S/R, I use MAs. Nonetheless, I think that sooner or later you will run into the same problem that I have. Since the success of any system depends on the underlying security, it is paramount that the stock or future oscillates...

By personality, I mean the tendency of price actions. Does the stock move quickly, or does it build its momentum slowly? Does it tend to gap up or down and fade ...? My question is how should you decide whether a stock has changed its personality? Thanks!

I am writing a trend-trading program. It works best when the stock is trending for the entire day which suggests chasing. Some stocks make a lot of money, consistently over six months, and some lose a lot. So my thinking is that it has to with stock selection, but so far I am having a hard...

How are institutional orders executed? I always thought that funds would want their orders filled within a range. However, market profile do suggest chasing, by claiming that institutional orders are coming in when the price breaks the intitial high or low. Can some one clarify for me? Thanks!

I don't know if it has to do with looking foolish. What I mean is that, for example, you have a stop loss at a particular support. But the stock does not immediately break it or bounce off it. The stock may test the support several times or it may break it but fail to follow through...

The program I am writing uses technical signals to generates exit points. Since it does not use hard stops, how do I determine risk? My experience with hard stops is that they depend on market conditions. If you have just a fixed dollar amount or percentage, you invariably exit at the wrong...

A few days ago another firm asked me to recruit for it and would compensate me by depositing the commissions into a trading account. That guy really thought that I am stupid. I told him that I had prop experience, but he still went on to tell me that all new guys need to make a deposit and get...

Thanks for the clarification and I know that I will not get suckered in again. I was gross positive, but with that kind of rates, no wonder so few people succeeded.

As MSJ indicated, your model is as good as the market allows. If your parameters work in one market but not another, your statistically meaningful result may not matter. I have recognized this fact, but still don't know how to take advantage of that. Maybe you can give me some ideas!