Recent content by ConsensusArb

Not a judgement... Just stating what I know to be the case in the most succinct way that I know how. There is no relationship between the price of something and its value. I was trying to make that clear. Everyone in a market knows the price of a good/service (if the market is liquid). VERY FEW...

There isn't much that I have seen will allow you to shorten the learning curve other than being able to mimic an expert. The problem with that is that neophytes don't know what an expert actually looks like, so in general you have to take your lumps to learn what's going on. The goal is to make...

It's not about how much you spent, its about what you got for what you spent. Until you have a deep understanding of the previous statement you are the sucker in every market you participate in. What did you get for your 7000 is the better question? I haven't spent that much on explicit "trading...

Some things may need clarifying... What sharpe ratio are you measuring? When i say that a sharpe of 2 means you are making good progress I am talking about the annualized figure. There are many ways to measure this though. One thing that I do as part of the analysis process is to look at the...

Sharpe ratio could be useful. It depends a lot on the strategy that you are trying to design. As has been pointed out, there are other things that one cares about when designing a strategy like drawdown depth and duration. One serious downside of the Sharpe ratio is that it equates volatility...