The system traders are too busy worrying about their slippage to discuss anything. Well, this one is.
And what is there to discuss anyway?
How about this: is it cheaper to trade interbank forex or forex futures? And how do you work it out?
The system traders are too busy worrying about their slippage to discuss anything. Well, this one is.
And what is there to discuss anyway?
How about this: is it cheaper to trade interbank forex or forex futures? And how do you work it out?
Aaah, but we hav vays ov making you talk.
Mechanical systems are admittedly difficult, but deep down, everyone knows there is an algorithm out there waiting to be discovered, that will sell the high of every bar and buy the low.
Oh whoops I've been reading too many trade magazines again.
littlemog: try the trading blox forum. 50% oriented towards trading blox software discussion though. but it's also not nearly as active. maybe someone moderates it and just deletes the kind of chaff like you see here.
thierry - Give me a winning system, I'll take care of money allocation
Really, if you have a winning algorithm, just allocate 1% of money on every trade. This is definitely the easiest part of any system. And if a system requires complex money management, it is usually not really profitable (Martingale?).
FXCode,
I couldnt disagree more.
I developed a winning system, with average money management rules, and it performed ok. I then worked tirelessly to improve the money management rules, and roughly doubled the performance measures (the usual measures, Sharpe, MAR, etc,etc) of my system.
You can do a lot better than merely risk 1% per trade. You can pyramid into trades, scale out of trades, adjust risk to an individual market's volatility, etc...etc.
You seem to suggest that risk management is a easier part of the system....I suggest it is the second hardest part of a system. The hardest part is being able to stick the system once you have researched it. The risk management rules are the second most important, and hardest to calibrate to the traders personal tolerances. While the entries and exits are the easiest, and least important (while still essential) part of the trading system.
Your thoughts?
AP
well written.
100% agreed.
I believe you can make money even with a random entry, as long as your money management rules are solid...
Sure, but not advisable of course...
I believe you can make money even with a random entry, as long as your money management rules are solid...