Our 400,000 Trade Test Proves Using Stops Is Not Very Bright

marketsurfer said:
No doubt about it. Many of these "armchair elite traders" are blinded by their own "reality tunnel" of a price chart since all they read are 20 year old book
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The charts can't beat the math. Even if someone spotted a double bottom on a 5 minute chart, the statistical/algorithmic models have orders waiting at key reversal points seconds before the armchair trader is finished pressing buttons. By that time, the spike has already occurred leaving them holding the bag. You don't need to be a math whiz or expert programmer to take advantage of these moves. You just need to know how to implement it, even if it involves outside resources.
 
destriero said:
You're a troll, nothing more. You know less about options than my 12yo.
I have never intentionally risked 50% on an option position, so I have no idea how you arrived at that figure, or why you somehow think it's optimal.
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I can easily prove you wrong. Are you interested in taking this challenge?
Let us then publicly define the parameters of the option, especially the maturity and volatility.

You thought that -gamma hedging was accretive. Nothing else needs to be stated concerning your knowledge and experience -- you simply have none.
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If you say so... ;-)

I didn't ask for screenshots, just data.
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Oh, how noble! Lord destriero asks only for the data... ;-)
You don't have any right to demand anything; just pi*s off with your demand!
Durf was asked to provide a screenshot on his journal, and he finally acquiesced and we were shown a $93 risk-position from a retail dealer's platform.
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And? It is just his own style I guess. Some people like risk, never heard about that in your "long" trading "career"?
 
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profitlocker said:
The charts can't beat the math. Even if someone spotted a double bottom on a 5 minute chart, the statistical/algorithmic models have orders waiting at key reversal points seconds before the armchair trader is finished pressing buttons. By that time, the spike has already occurred leaving them holding the bag. You don't need to be a math whiz or expert programmer to take advantage of these moves. You just need to know how to implement it, even if it involves outside resources.
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It's unclear if you're distinguishing between automated and discretionary traders using the same 5 minute double bottom setup? I took it from your earlier post that u didn't want to elaborate on what size bar intervals u were sampling. I didn't need both I was just looking for the smallest bar interval u use. For instance, if u check for High, Low and Close or other stats at some given time during the day then what would b the smallest lookback value or bar interval you were considering.

Would the "smallest" bar interval or data sample cover the previous 5 minutes or would your smallest sampled value cover a range of the data which is bigger or smaller than 5m?
 
botpro said:
I can easily prove you wrong. Are you interested in taking this challenge?
Let us then publicly define the parameters of the option, especially the maturity and volatility.


If you say so... ;-)


Oh, how noble! Lord destriero asks only for the data... ;-)
You don't have any right to demand anything; just pi*s off with your demand!

And? It is just his own style I guess. Some people like risk, never heard about that in your "long" trading "career"?
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Sure, any time.

And $93 at risk isn't risk. It's lunch for two.
 
botpro said:
Posting #1 !
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Out of nearly 400,000 tested trades, stops hurt the performance of the system. In fact, the tighter the stop, the worse the performance. Even stops as wide as 50% away from the entry dampened the systems returns. Of course there are psychological benefits to using fixed stops but at the expense of profit. Dropping the fixed stops is a sure way to improve the results of your trading system.






Nothing quantified. "Stops hurt" you say!?
 
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