Always Profitable Trading System

Quote from RunTrade:

I believe something was discussed like this a long time ago.... if i recall it went something like:

if there is a 50/50 chance of a stock moving up 5 points or down 5 points, applying proper risk management creates a winning system. Stop loss at -1 point; take profit at +2 points.



It got a lot of people thinking...wish I could find the thread.


If this strategy could ever be successful, I think it would work best with option trading. Manage a system based on "hitting homeruns" on highly volitile stocks.:confused:
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The question here is what is the probability of the dollar stop being hit. Not the 50/50 outcome of the 5 point move.

50/50 for a 5 point move in one direction without retracements...then you might have something.
 
ohhh..so now all the Elite BrainChilds are going to throw a 14 day RSI and a 200 day ma on the thing and claim victory...it aint that easy to keep up with the Jones :) ...


Quote from Hooked2000:

The question here is what is the probability of the dollar stop being hit. Not the 50/50 outcome of the 5 point move.

50/50 for a 5 point move in one direction without retracements...then you might have something.
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Position Sizing is the key but how do you position size your winning side and losing side of the same contract optimally?

Anyone wants to discuss and improve on AntiMartingale/adaptive scaling or spread oscillation(STARS) methods?
 
You are barking up the wrong tree devoting so much time to Magic Money Manipulation Schemes. Your current ideas are based on fallacious concepts.

It would be better to focus on: 1. Why do I have an advantage on the trade itself AND 2. Can I easily afford the risk I am taking?

Of course your exit strategy should be well defined.

No successful traders I know think the way you currently do. Certainly Sorros ( who I do not know) does not.

HOWEVER, discussing your ideas is a great way to learn and grow.
 
@ scalpmaster

IMHO, the problem is not that you can’t find algorithms producing spectacular returns. The problem is to find algorithms producing spectacular returns after transaction costs. There are properties of prices that can be exploited algorithmically but commissions and slippage can make the effort very difficult.

@777

There are some successful professionals that base their trading methods on mm algorithms. Ed Thorp comes to mind first.
 
I have algos that can give me almost certain profit when daytrading.

They use statisitcs such as standard diviation, ect

Anyone who tells you markets are random is wrong.
 
Quote from stock_trad3r:

I have algos that can give me almost certain profit ...

They use statisitcs such as standard diviation, ect

Anyone who tells you markets are random is wrong.
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i thought that statistics explained/identified non-directional volatility (ie, std dev). how are you using that to predict direction?
 
Quote from scalpmaster:

Anyone heard of STARS (Securely Trading A Revolving Spread) or used this book's method? Thinking of buying it...any comments?

http://www.tradetofreedom.com/stars.php

STARS is the ONLY method that will allow you to trade with no care at all about market movement. Why pretend you can predict the future when you know you can't?

You know precisely how much you much invest for a particular return, and have no risk of ever losing because the wave peaks just keep rolling on.
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Did you ever buy it? Looks like one of those correlation systems where you go long x number of one index and short y number of another index and then wait until your position randomly becomes net positive and then exit :confused:
 
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