Millionaire Traders - Market Maker or Market Taker?

Quote from sandygray66:

jbt -

I went to Amazon to buy your book, but it says shipping in 3-6 weeks. Why so long?
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We sold out too quickly - please go to your local B&N or Borders. They have copies.
 
Quote from Mike805:

Hi JBT,

Thanks for starting a very good thread, lots of great information so far.

Being a former electrical engineer, I agree, for the most part, with Chuck's quote. However, my analytical nature has produced several systemic edges via "engineering" a time series of data. By this I mean using statistical learning algorithms to identify market inefficiencies. In general, building these types of models requires a certain amount of the scientific approach (as well as good mathematical background).

Maybe we could separate Chuck's statement a bit - a compromise so to speak. My belief is that without a solid mathematical/engineering approach to finding a statistically significant setup/edge one lacks the basic foundation for a robust trading method. The actual execution portion, i.e. profiting from that edge is where the art comes into play. I believe this to be the case for both discretionary and systemic edges - the execution is the art and the edge is the science.

I also believe that the "optimization" concern is always brought up in too broad a manner. For example, one can optimize an exit strategy based on inherent trader specific faults, such as the position sizing example you mentioned earlier (i.e. scaling out of an initial 20 contract position).

Just some topics for discussion.

Regards,

Mike
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Mike you couldn't be more right. As a matter of fact we have several systemic traders using statistical algorithms very successfully in the book.

So I think the proper way to phrase my statement is that yo cannot engineer an exit :). Allow me to explain.

Two of the guys use systemic approaches to entries, Dana Allen is extremely successful in doing it in equities and options and he goes into great detail about how he does so. However, his exits -although systematically based - are always manual in the end.

Another guy - one whose interview I believe you will find most interesting - Hoosain Harenker uses a fully automated approach - BUT and its a very interesting but - his software robot automatically tightens stops very aggressively once the trade is in the money. So he never allows a winner to turn into a loser, but he often does not get his initial target. He is btw a high frequency trader, shooting for only 10 points/day.

My point being is that both of these traders recognize that stops and limits are dynamic rather than static concepts. Markets could not care less about either one of them. Every trade therefore is an exercise in the ART of Trade Management - even if it is systematic in its origin :).

Hope that clarifies matters
 
Quote from marketsurfer:

one of the signs of genius is being able to take the complex and make it simple. wonder what taking the simple and making it complex indicates??

surf
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:) Agreed. In fact I would say this is a very common trait of all our interview subjects.
 
Quote from jbt:

We sold out too quickly - please go to your local B&N or Borders. They have copies.
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I have a copy I'm willing to part with, if you are tired of waiting, and want to get your copy ASAP, drop me a PM.
 
Quote from jack hershey:

Thanks for your response. I'm happy for the intern; hopes she links the trades she is doing.

My post was a calm and logically developed one and may be beneficial for a range of traders.

I can appreciate your real world and how you are basically surrounded by those of like mind.

Go over to your computers and look at the sequence of indications that a continuation of price movement is coming to an end by looking at the premium, the price and volume (if you have one constructed) and the DOM and tick charts. Also glance at the leading indications of the traded price.

Ask yourself do you have a set of indications that are a reliable set? Does that set have differences that appear? Do these sets of differences sequence according to a regular pattern?

The answers are standard, we all know that. Humans sweep these frequently; ATS does it many many times faster than humans. IT, today, makes ATS manditory. At some point the exit and entry become one and it is known as a reversal.

Many people have discovered the degrees of freedom for trading any market. These sets of indications vary as the market informs the trade, either visually or automatically. If is so very fortunate that the market's data is so easy, in modern times, to process.

People need to use the power that is available to be on hand. It is not a traded turn anymore that matters; it is being empowered with technology that matters.

My comments do enliven any thread. There are many reactions to them. I do consider your responses and intiatives like any one else does. Thinking up not having me here is an interesting one.
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I was not able to translate jacks text so I went over to www.gizoogle.com and used their "textilizer" to get the translation. Here it is,

Thanks fo` yo response n shit. Im stoked fo` tha intern, hopes she links tha trades she is mobbin'
I can appreciate yo rizzle world n how you is basically surrounded by those of like mind.

Go over ta yo computa n look at tha sequence of indications thizzat a continizzles of price movement is com'n ta an end by spendin' at tha premium, tha price n volume (if you have one constructed) n tha DOM n tizzle charts n we out. Also glance at tha lead'n indications of tha traded price yaba daba dizzle.

Ask yoself dizzle hizzy a set of indications thizzat is a reliable set? does thizzat set have differizzles thizzat appear? do these sets of differizzles sequence accord'n ta a regular pattern?

The bitch is standard, we all kniznow T-H-to-tha-izzat in tha hood. Humans sweep these frequently, ATS does it many many times wanna be gangsta than humans . Chill as I take you on a trip. IT, today, makes ATS manditory spittin' that real shit. At some point tha exit n entry become one n it is known as a reversal crazy up in here.

Many thugz have discovered tha degrees of freedom fo` perpetratin' any market cuz its a pimp thang. These sets of indications vary as tha market informs tha trade, eitha visually or automatically� n' shit. If is so very fortunate T-H-to-tha-izzat tha markets data is so easy, in modern times, ta process . You'se a flea and I'm the big dogg.

People need ta use tha powa thiznat is available ta be on hand. it aint a traded tiznurn anymore that matta; it is being empowered wit technology thizzat shot calla and my money on my mind.

My comments do enliven any thread. There is many reactions ta T-H-to-tha-izzem . Throw yo guns in the motherfuckin air. I do cracka yo responses n intiatives like any one else does . Real niggas recognize the realness.. Think'n up not hav'n me hizzle is an interest'n one.
 
I just spoke to the publisher and they are going to expedite the Amazon order, so hopefully it should take no more than a week or two to get the book.

We are trying our best to make sure guys can get the book ASAP.
 
Quote from jbt:

I just spoke to the publisher and they are going to expedite the Amazon order, so hopefully it should take no more than a week or two to get the book.

We are trying our best to make sure guys can get the book ASAP.
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Why does the price keep changing? the other day it was $23 now its back to $26 ???

Is it a better version for the extra 3 bucks?
 
Quote from jaronimo:

Why does the price keep changing? the other day it was $23 now its back to $26 ???

Is it a better version for the extra 3 bucks?
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:) Sorry I don't set Amazon's price policy. I just write them
 
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