The end of last year and start of this one were exceptional.

New systems and historical volatility

The FX market is highly efficient and very opaque, anybody who tells you any different...

Some Questions about Stocks VS. Forex

As you say there is noise on all levels, big moves happen more often on smaller time-frames for obvious reasons, but the real difference is the size of the spread compared to the move. The lower you go in terms of time-frames the bigger your ...

D1 and M5, which is noiser?

Have a search though some of my recent posts, I explained it to somebody else in detail a couple of months ago.

How long should you test a system for?

With all due respect to Hanover, I'm with Tjpld on this one, It's easy to present static examples on why averaging down doesn't work, but IMHO it's not too hard to also think of ways to mitigate most of the pitfalls, however it is certainly no ...

Why martingale doesn't work in trading

It's not how long should you test for but how many trades one should have before you assume you have a statistically valid sample, I look for a > 90% t-test rejection of non-zero mean on the last 120 trades, with in minimum of 50. I re-evaluate this ...

How long should you test a system for?

That's cool

Myth Busters the Forex Edition

I think we are kind of missing each other here, to reply to the post, no I don't think that there is a way to manage random entries to profit (not a systematic way anyway). But there is a difference between random entries and a system which (for ...

Myth Busters the Forex Edition

I never said this is what I do, it's just an observation borne of testing exits.

Myth Busters the Forex Edition

I guess we will have to beg to differ on this, I would refer you to "The encyclopedia of trading strategies" by Katz, in this book they test this very thing and conclude that stop management can have a positive impact on expectancy, therefore ...

Myth Busters the Forex Edition

In response to giraia_br: I think it depends on your definition of money management, perhaps I have been somewhat loose with the language here. If by money management one means purely position sizing, then obviously this will only determine the rate ...

Myth Busters the Forex Edition

I don't think it's quite that black and white. In general this statement is true, but one can imagine a system which is just under positive expectancy for which effective money management could just push it over the line into positive territory.

Myth Busters the Forex Edition

These are good questions, the answer for me was to automate all of it, the tweaking, position sizing, the stopping & starting of systems. Obviously one can never completely divorce one's self from the emotions which surround trading, but you can ...

Mechanical System - Emotions Discussion

It is an important step to realize that one cannot control their emotions, I also realized this pretty early on. Mechanical systems are totally worth pursuing but you are not going to find anything being given away on a forum, it's lots of hard work ...

Mechanical System - Emotions Discussion

Nope, but my experience was that NT will crap out eventually. (I used to get feed errors on L2, the IB data stream is notorious for crapping out).

automated trading systems/programming/back testing

One thing to keep in mind with NT (which may or may not be important to you) is that NT (at least when I was using it) does not persist it's strategy setups between sessions, every time you restart NT you have to reenter your setups, which I found ...

automated trading systems/programming/back testing

You can use ActiveX with C#, beyond that I wouldn't touch Interactive Brokers API with a barge pole (for reasons, just read though any of the on-line boards dedicated to it), which is a shame as their rates are good.

automated trading systems/programming/back testing

Indeed it is, you will probably hit this wall a few times, I know I did and still do. Real time systems are quite hard to fully validate, one can and should unit test but the only real proof comes with time and constant back checking.

Systematic trading

On the subject of custom trading systems, I recently added a new strategy to my system and it was doing quite well. Just as was about to be switched into live I went over the code and results one more time and discovered that I was in fact using no ...

Systematic trading

Nice work, I'm really interested to see what happens, good luck!

Systematic trading