Trading Wisdom for Aspiring Hedge Fund Managers

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Quote from Kurgan:

And how do you apply it?If it goes up it is 1,if it goes down it is 10?
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Dark Horse gives a reference with several examples of my applications of Boolean Algebra. Go back a few posts and click on his red word "crazy", the last word in his post.

In this thread, the OP's posts all avoid references to persons who use Boolean Algebra for specific applications.

I hope you take the OP's advice and begin a thread on Boolean algebra. You will find many many misuses that do not work. that will appear in your new thread.

All comprehensive specific trading systems are programmed using Boolean Algebra ultimately.
 
Quote from Kurgan:

Thanks Mickey,for the clarification.So I suppose there are a lot of "IFS" in the case of the markets,and they should be nsync.The main point is to know the correct criteria.By saying that only Boolean Math is applied to the markets,I'm trying to understand,what a person has in mind?That one should have a certain set of criteria,related to the Math?Other words,if I know Boolean Math,I don't need anything else,correct?
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themickey is incorrect.

Consider seriously that most people trading can only make a certain limited amount of money at a given maximum velocity.

the mistakes presented to you by themickey show why this is true and where a thing called "drawdowns" come from.

For example, his first incorrect statement is where missed signals come from and why stops are often hit as a consequence.

Another example he made is thinking "if" is used in logic when it is used primarily in the HS of a paradigm. Only then does a person have the right to use the "operators" suggested by themickey.

In designing and operating systems, functions are used to create conditions, then indicators are used to create "signals" for taking behavioral actions. Operators are used to bridge together functions to create more complex functions. Operators may also be used to connect parts of indicators.

Some good references for functions (over 100) are found in "Trade Sense Functions Manual": by GFTI, pages 7 through 97. The categories of functions are found on pages 5 and 6.

"Indicators Manual", by GFTI shows indicators and their illustrations on pages 3 through 104 where one indicator per page is the rule. Indicators have criteria and syntax and operate as a consequence of inputs which arrive via gates and filters.

Trading can be a complete approach or just fragments. for example "backtesting" is usually very imperfect and does not resemble reality. this is becuase a systemmic approach is never used. Themickey is sort of learning and has not gotten as far a systems. He, at best, is only as far as dark horse and is using "truisms" and partial strategies". Here in this thread occasionally "studies" (mathematically speaking) have been turned into truisims on occasion.

Now, in your Boolean thread you have an example of a system which is built from three variables and one look up table. It starts you off in trading @ 1000% per annum as calculated by dark horse, approximately. The look up table was created from knowledge of how the market works.
 
Trading Wisdom 42: The PreMortem Technique

"I have come up with another method for tempering overconfidence. I call it the PreMortem technique. A postmortem is a procedure done in a hospital to find out why a patient died. The physician benefits, the medical community benefits, and even the friends and relatives benefit from what is learned. However, a postmortem doesn't help the patient. Similarly, after a project has failed, its managers may conduct a postmortem session to figure out what went wrong. But it is too late. The project has already failed. Why wait till the end to find out what went wrong? We can move the postmortem to the beginning to help us anticipate problems and to become more realistic about the challenges. In a PreMortem, you ask your team to pretend that a crystal ball shows that in a few weeks or months your new venture has failed. The team members then write down all the reasons why it failed. We can't expect to fix all the flaws, but we can prepare ourselves and our teams by anticipating some of the problems."

- Gary Klein, Searching for the Keys to Adaptive Decision Making



JS comment:

How might the PreMortem technique be helpful in vetting a new trading methodology, a new long-term investment, or an important business / life decision?

Buy Searching for the Keys to Adaptive Decision Making on Amazon

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In agreement. The best way to construct a trading system is to determine what is wrong with it, or in other words as you are building it, continually look at it critically (with criticism)
Similarly, when trading a system, never look at how much money it wins or loses, rather look at whether it is trading the signals accurately as per the system design.
 
Quote from jack hershey:

themickey is incorrect.
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It must be nice being right all the time, never making a losing trade, understanding the perfection of The Holy Fractal of The Market, and calling out everyone else who has not crossed the magical stream to the other side.........
 
Quote from Wide Tailz:

It must be nice being right all the time, never making a losing trade, understanding the perfection of The Holy Fractal of The Market, and calling out everyone else who has not crossed the magical stream to the other side.........
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So why didn't you post she is incorrect?

Do you see my error in this post?

If you don't have any questions about my posts, then just make the necessary changes to what you are doing presently.
 
Hmm...but if your goal it to simply make lots of money..what's the problem?

Or are you doing this for other reasons?

It makes me chuckle when someon has a go at someone who has built a $1B+ profit business....like they are idiots!

Like aday trade making $50k a year having a go at Mutual fund manager making $500K per annum. Whos' the "smart one"?

(if you don't know give up...)

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He picked up the money management business from his dad Phil -- who basically created the template for him -- then built what is basically a slick mutual fund business wholly oriented to fee collection and insane amounts of asset gathering. The guy has more than $41 billion spread over 38,000 accounts. He might as well be Vanguard or Charles Schwab.
 
Curios to know how you read his posts if he's on your ignore?

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omg i am so glad i put that guy on ignore!
 
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