FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can examine the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you downright realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a rapid sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you entirely realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you entirely realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a prompt sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a prompt sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you entirely realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a prompt sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you downright realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you downright realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you downright realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a rapid sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you entirely realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a prompt sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you downright realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a rapid sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a prompt sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you entirely realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can examine the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a rapid sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you downright realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you downright realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a prompt sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you entirely realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One ordinary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you entirely realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a prompt sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can investigate the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a rapid sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hook-up
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you totally realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a swift sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can examine the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial capitulate, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a prompt sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can explore the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One elementary mistake could lead to eighteen unprofitable years.
- Some choose to sit back and witness it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And reminisce, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a quick sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like lovemaking
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and see it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent playmate, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a rapid sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High comeback
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
June, 2006, FOREX QUANT
FOREX QUANT
Monthly Archives: June two thousand six
Here are several brokers those are chosen by large fund managers to execute their mechanical trading systems.
Seems like no MT4 brokers used by large firms (not yet ?)
Metatrader Brokers
Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.
Sent: Tuesday, November 22, two thousand five 6:16 PM
Subject: Re: [MT_E and I] Experts Prohibited
Reasons trading is like hookup
- Some like it long, some like it brief.
- You can probe the market as much as you like, but it all comes down to luck.
- Those who talk about it the most, have the least practice.
- One plain mistake could lead to eighteen unprofitable years.
- Some choose to sit back and observe it grow.
- Terms include sway trading, asset turnover, naked call, after hours, insider trading, silent fucking partner, blind entries, 30-day wash rule, sit astride, triangles, descending tops, ascending bottoms, pump and dump, partial give up, stop order, position limit, voluntary liquidation, and explicit interest.
- Low confidence can keep you out of the market.
- Everyone tends to concentrate on spectacle.
- Some do it alone, others do it with a group, and some hire professionals.
- and the number one reason….Some positions are better than others and the best position is always up for debate!
And recall, past spectacle is not necessarily indicative of future results.
News trading
If you are going to trade the news make sure you fully realize what (if any) cause and effect relationships actually exist inbetween news events and price moves, and what the timing of them is. For example, significant news announcements for stocks usually cause increases in volatility, liquidity, and volume, but not necessarily in a predictable direction – that depends on the differences inbetween actual and anticipated news.
For this reason it is better to base a trading method simply on anticipation of higher volatility rather than attempting to accurately predict the future direction. In this way you can still profit even when it turns out that the long-term reliability of your perceived cause-effect relationship actually turns out to be no better than random.
Search for the Holy Grail
Some things in trading just aren’t possible. Maybe a car analogy will help. Imagine for a moment you are designing a car and it has to have the following characteristics:
- 0-60 miles per hour in six seconds
- Top speed of one hundred eighty miles per hour
So it’s a rapid sports car at the high end of spectacle. Now you have a duo more required characteristics:
- Carry seven passengers in convenience
- Do forty miles on a gallon of gas
If you know anything about physics and conservation of energy you will quickly realize that these four characteristics would be virtually unlikely to embody into one vehicle (with current technology). You have two main choices – compromise on some of the requirements, or design three cars (a sports car, an SUV, and a compact).
What has this got to do with trading? Well a lot of the time people are attempting to design the ‘Holy Grail’ system that has the following characteristics:
- High win%
- High average winner size to loser size
- High frequency
- High come back
- Low drawdown
- Low slippage
- Low implementation costs
Just like the car design where some of the characteristics have an inverse relationship (e.g. top speed to fuel economy) trading systems exhibit similar behavior. High win%, for example, is usually inversely proportional to both trade frequency and average size of winners compared to losers.
When you are attempting to design a trading system it is significant that you make sure you don’t have an ‘unlikely specification’ for what you want to achieve because you don’t clearly understand the relationships inbetween the various system components and characteristics. Otherwise the only thing you’ll achieve is frustration.
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