What method gives best chance for profit?

[horribilicus]

Quote from Sam Mcgee:

Does anyone have any idea what method of trading would give me the best chance for success?

If "best chance of success" means "largest probability of winning trades", just make sure your stop loss is 10 times farther away than your profit target. Presto, 85% winners.


I also think you would enjoy reading the poetry of Robert Service, for example: http://www.potw.org/archive/potw22.html

Now Sam McGee was from Tennessee, where the cotton blooms and blows.
Why he left his home in the South to roam 'round the Pole, God only knows.
He was always cold, but the land of gold seemed to hold him like a spell;
Though he'd often say in his homely way that "he'd sooner live in hell."

On a Christmas Day we were mushing our way over the Dawson trail.
Talk of your cold! through the parka's fold it stabbed like a driven nail.
If our eyes we'd close, then the lashes froze till sometimes we couldn't see;
It wasn't much fun, but the only one to whimper was Sam McGee.

 

[fatrat]

Quote from BigBubba:

personally, i prefer a tick or volume charts for auto trading. it allows one to use (if they choose), 24hr time frames. minute charts won't do this as well.

I use tick charts as well, but I feed them into a smooth/transformation kernel. The problem with most brokers is that they'll either send snapshot data, or rebroadcast UDP packets. Not only that, but if a trade executes on a dark pool, it doesn't have to be reported for a full 30 seconds. What this does for Joe Q. Trader is that it can cause the system to ignore events of significance due to error on behalf of the broker, or falsely create events of significance.

Using a transformation that minimizes the effect of substantial variance on time-series data prevents systems from making faulty trades.

For example, suppose you're trading a support/resistance system. Then all of a sudden, a million share transaction that happened on a dark pool and then got reported via ISLD or ARCA shows up. What is your system going to do? It's going to be a complete idiot, assign significance to that information, and make a bad trade.

Trading is a bastard of a profession. Every little detail or corner case is out there waiting to make your anus bleed.

 

[Prevail]

mark, what is the best direction to go to nail down a breadth based system? thanx, good seeing you here.

Quote from MarkBrown:

yea well if thats what it takes cause even a few thousand trades can have random results which you think are solid till the data changes. they make random data generators for guys like you who have weekly systems - there was one named metrodome or something like that.

mb

i may have a copy i could send you.

 

[thetrendfollowe]

Quote from MarkBrown:

yea well if thats what it takes cause even a few thousand trades can have random results which you think are solid till the data changes. they make random data generators for guys like you who have weekly systems - there was one named metrodome or something like that.

mb

i may have a copy i could send you.

Thanks for your offer.

But my systems are always well tested.
Naturally, one of the (many) tests for robustness is to compare the results against those taken randomly.

The difference was significant and showed that the system clearly had an edge.

All the details about how i tested my system are on my blog.

http://thetrendfollower.blogspot.com/