Prudent Risk Management Is The Only True Edge In TRADING

[murray t turtle]

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Also, sounds like you said 50dma is better than turtle 55dma, what if I use 45dma, would I be ahead of you?

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YES, you would, even though IBD also uses 40 week ma LOL.
AND YOU probably have noticed ,iron chef[aka iron chief];
depending on if its an uptrend or downtrend; a 50 dma can be ahead of a 200 day moving av or vice versa.
I dont use a 40 week ma, myself.[EDIT NOT magic,50+ 200dma= Fibo numbers + IBD ideas.
50% off sale is also a good volume mover......

 

[taowave]

You are confusing money management and edge.MM is not edge and there is no "universal thruth"..

If you want to make a point,back it up with numbers,i.e simple stats

All traders guess right. All traders guess wrong. It's what you do with those guesses that makes a winning trader or a losing trader.

 

[deaddog]

You are confusing money management and edge.MM is not edge and there is no "universal thruth"..

If you want to make a point,back it up with numbers,i.e simple stats

Not so sure about that.
Edge is being able to see something in the market in time to be able to exploit it.
Without money management edge may not be enough.

 

[taowave]

Retail guys love to throw around the word edge..MM is rarely edge..Accurately predicting the probability of an event over time is closer to the " "edge" than the other parts he refers to at the retail level.

Why do you think every Hedge fund/IB has a team of quants and programmers??

Edge may be speed/ technology,research,quant/modeling, non correlated trades/businesses within a fund and or flow ..

And without saying ,there has to be some sort of risk modeling,risk limits in place.

Yeah,if you are great at any and all,it's an edge

Not so sure about that.
Edge is being able to see something in the market in time to be able to exploit it.
Without money management edge may not be enough.

 

[Mr Subliminal]

Not so sure about that.
Edge is being able to see something in the market in time to be able to exploit it.
Without money management edge may not be enough.

I was trying to make the same point as @taowave in our little exchange here. Your edge is not due to cutting your losses quickly and letting your winners run, but rather your stock selection (and probably other factors). Otherwise any monkey could write a bot that picks random stocks and cuts losses quickly and lets winners run, and we'd all be millionaires.

 

[deaddog]

I was trying to make the same point as @taowave in our little exchange here. Your edge is not due to cutting your losses quickly and letting your winners run, but rather your stock selection (and probably other factors). Otherwise any monkey could write a bot that picks random stocks and cut s losses quickly and lets winners run, and we'd all be millionaires.

Have you tried it?
Most traders wont cut losses or let winners run.
They hope the losers will come back and take small profits as soon as the price starts to move against them.

 

[Buy1Sell2]

Have you tried it?
Most traders wont cut losses or let winners run.
They hope the losers will come back and take small profits as soon as the price starts to move against them.

Yes, that is exactly what happens. The full and correct use of PRM is the edge.

 

[Mr Subliminal]

Have you tried it?
Most traders wont cut losses or let winners run.
They hope the losers will come back and take small profits as soon as the price starts to move against them.

Programming the bot as we speak.

Yes, that is exactly what happens. The full and correct use of PRM is the edge.

Thanks for the tip. I live in Vegas and am now making a frantic dash for the nearest casino to put PRM into action.

 

[deaddog]

Programming the bot as we speak.

Entry and exit criteria?

 

[Mr Subliminal]

Entry and exit criteria?

What made you change your mind? The thread is too long for me to find the answer myself.