Chapter 14 - Optimization Seems out of place in a book about MM, Jones admits (well, he lampshades it, actually). In fact it’s a classic trick. Jones is leading us down a primrose path where he optimizes a system and then points out with flawless ...

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Here is the EA I promised. I called it Jonestown as it's based on the system by Ryan Jones and it could massacre your account if you're not careful. My code writing abilities have improved since I started learning a few years ago but I'm still a ...

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Yes, I'm hiding the trader and the broker as I don't want to embarrass them and get into a flame war. I also don't want run afoul of Fair Economy (the operators of ForexFactory) who after all, have a business to run and their main source of income I ...

Clemmo's Trading Odyssey

Ah yes, those are both excellent suggestions!

Clemmo's Trading Odyssey

It seems like these days the London session is not the big liquidity event that it once was. Now we have to wait for NY to wake up to see anything move more than a few ticks.

Liquidity and Structure

A Simple Trading Method Oh boy! I wasn’t expecting this; were you expecting this? About as simple and logical as they come, says Jones. Trend-following method No exit rules aside from protective stops. Reverse on signal change. Exit on profitable ...

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Incidentally, if anyone thinks I'm being condescending to these people, it's quite the opposite. My condescension is reserved for the market makers who use the rare skilled trader as liquidity for their nefarious goals. This fellow is actually quite ...

Clemmo's Trading Odyssey

Chapter 13 - The System The purpose of this chapter seems to be simply to rant about the current state of affairs in trading. There is an undue emphasis on systems and methods and not enough on MM! Well, sure. Long-term success can be attained with ...

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Here's an interesting case. This trader has been going strong for over two whole months - nearly three! They have quite an enviable equity curve built up. image They are trading 10 whole lots on only $10k+ which signals to me this is a mini account ...

Clemmo's Trading Odyssey

I do enjoy the bits of information that I get from FF about the opinions of other market players, but I've noticed that the data is often...well, there's no polite way to put this, bad or outdated. For example it's possible for a leader on the ...

Clemmo's Trading Odyssey

Chapter 12 - Risk of Ruin Jones begins this chapter very controversially dismissing the whole notion of RoR as nothing more than a useless statistic. He goes through a ‘Zeno’s paradox’ type analysis (again using coin flipping) of why RoR is of no ...

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Chapter 11 - Other Profit Protecting Measures Here Jones addresses topics covered in the first chapter in more detail. Consecutive winners/losers. This idea comes from the gambling arena and has no mathematical basis. I believe he’s right both from ...

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Chapter 10 - Market Weighting Through MM, Not Before It Jones tries to head off any arguments about which is the superior weighting method by taking a different approach. Suppose we are trading 3 different markets. S&P, Bonds, and corn. Largest DDs: ...

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Is this answer coming from the team at OpenAI or the AI itself?

AI talking

Chapter 9 - Market Weighting This chapter addresses a common grievance that Jones encounters in his seminars. Traders want to ‘equalize’ contracts between different markets, but Jones argues this is unnecessary and counterproductive. For example if ...

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Chapter 8 - Portfolios This age-old concept is all about diversification to avoid risk. If you can afford to build a portfolio but instead choose to play a single instrument or option you are gambling, says Jones. However Jones then reverts back to ...

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Increasing Geometric Growth by Abandoning Asymmetrical Leverage Hopefully you get the idea behind asymmetrical leverage, because Jones re-explains it using coin-flipping examples and I don’t feel like going back there. The point is that decreasing ...

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Jones runs through a complex example that compares what happens if you use the decreasing risk after suffering a DD and then gain back on a series of trades. He concludes that profit protection provides a 57% benefit at a cost of a 7% loss of ...

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Chapter 7 - Rate of Decrease Usually most systems increase risk at the same rate that they decrease it. Jones proposes an asymmetric method. The rates of increase will not necessarily be the same as the rates for decreasing risk. The function is to ...

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Applying the Fixed Ratio Method to Stock Trading Stock trading usually has only a 50% margin rate, whereas in commodities it can be as low as 10%. Stock trading allows odd lots. (but what does this have to do with anything?) Jones devotes pages of ...

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