Kudos to MMs

Quote from Pekelo:

Can I do it in this journal? As a test against or parallel to your NFV. I didn't say I will add randomly, but YOU can pick the entry and I will manage the trade, averageing down even following your Fib rule if you like.

It would be interesting to see how I do it using random entries, but managed position...The point is that it isn't your NFV what makes the strategy profitable but position management...

Or I can just trade against your edge to see how it works. Maybe we should wait until the market and NFV get close to each other again.
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Sure! I am all for science. I welcome a proof. In fact, I demand it.

Go NFV!!!!!!!!!! I am rooting for ya.
 
OK, so although I expect a downturn soon and your NFV has a 30 or so pts edge here, I will go LONG at 1102.5 and will manage the position and average down 5-6 times if it goes against me, probably by every 8-10 pts...

The test of the pudding....

Edit: In my previous post a not was missing from this sentence:

"how I do it using random entries..." correctly: not random entries but managed position
 
Nitro and Pekelo, two of the brightest traders posting on ET. This thread now has the makings of the stuff of legend and history. I can't wait!
 
I am getting old... :(

Quote from Pekelo:

Edit: In my previous post a not was missing from this sentence:

"how I do it using random entries..." correctly: not random entries but managed position
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Edit of the edit: The original sentence was the correct. :)

So the entry can be random, if the position is managed well, one can get out with at least a small profit...

I still think we are going down, if not, profit, if yes, a good test of the theory...
 
Quote from Pekelo:

OK, so although I expect a downturn soon and your NFV has a 30 or so pts edge here, I will go LONG at 1102.5 and will manage the position and average down 5-6 times if it goes against me, probably by every 8-10 pts...

The test of the pudding....

Edit: In my previous post a not was missing from this sentence:

"how I do it using random entries..." correctly: not random entries but managed position
More...
Your proposition will get too complicated. In particular, you should be interested in that case as to what your Sharpe/Sortino ratio is, since we may make the same amount of money, but you or I will do it with less risk. In the real world that is how you get "graded". Otherwise, we would all play martingale strategies until we made money, a known losing proposition in a negative edge game.

You are adding every x number of points, and that can happen ten or twenty times a day. In NFV we add when the difference between SPX and NFV is outside some range, so we are adding far more conservatively.

This exercise is futile because if your entry points are truly random, you cannot make money after expenses simply by money management, and I don't have the patience to explain it to you. I don't mind if you run this experiment on this thread, but don't ask me to spend too much time on it.
 
Quote from nitro:

NFV 1069.85. SPX 1096.67.

Edge is still quite strongly short, but not at third add point yet.
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See? You thought you had a strong edge and here we are at 1110, 13 pts later. That was my point....
 
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