#2) POE More with percent of equity money management: Again starting with the assumption that you have exactly a 50% win/lose rate and a 1:1 reward:risk ratio and in this case a 20 pip take profit/stop loss. When using a leverage of 1 and 1000 ...

FXEZ's Quantitative Research In R

#1) POE The percent of equity money management method is of interest to me. Essentially your trade size varies with your account (bank) size. This is a quick investigation some of the issues with this MM strategy: # % of equity simple example # take ...

FXEZ's Quantitative Research In R

Thanks for your post. Yes this shows how just a small difference in the probabilities can tilt the game quite dramatically. In fact with a 1:1 reward:risk ratio and the cost of executing a scalping system in terms of fills/spreads the equity chart ...

FXEZ's Quantitative Research In R

Hey ezcurrency, Great to have you here! Yes I think that's exactly what this thread is all about - learning from each other. Merry Christmas!

FXEZ's Quantitative Research In R

Random walks - there are many ways to build these but just using some of the functions in R to produce a cumulative series of random numbers shows the same principle: That while in a 50/50 coin flip you should get an equal number of heads and tails, ...

FXEZ's Quantitative Research In R

Those top two are actually not bad looking for first order derivatives (velocity) compared to some that I've produced. When you cumulate you essentially amplify the additive errors over time and this visual representation of the cumulative additive ...

Quant basket trader? I need your help!

Hi PipMeUp, Interesting analysis and explanation - thanks. Something that I often look at when analyzing the derivatives of price as in subgraph #2 and #4 above in the picture is to also plot the cumulative sums of these two figures to get an idea ...

Quant basket trader? I need your help!

Email from Oanda regarding inactivity fee: (this is why broker monopolies in the U.S. are bad for U.S. customers) Please be advised that OANDA Corporation has made changes to our fxTrade Customer Agreement effective October 3rd, 2016. If you have ...

OANDA Discussion

Very nice MathTrader7! You have visually shown that none of the particular tools selected and tested is fit for the intended job. And finding an advantage in the markets doesn't need to be any more difficult than finding one (or more) tools that IS ...

The Most Useless Indicator

Since the OP mentioned using the median in place of the mean, an alternative measure instead of standard deviation is median absolute deviation or 'mad' in R. This effectively represents the average absolute deviation from the median (rather than ...

Voodoo Science-Statistical Analysis

It is possible to compute the empirical probabilities of reaching a given deviation level without any need to make assumptions about the type of distribution that best represents the market data. For example on EU 15M with a 100 bar moving median ...

Voodoo Science-Statistical Analysis

Thanks!

SEC bans Broker-Dealers from retail forex transactions

That's a really interesting post, roughtrader. I generally share that sentiment and see that this is a dividing line between those who practice heuristic analysis and those how practice scientific analysis. I tend to favor scientific analysis and ...

The biggest lie about divergence in trading

There are plusses/minuses for each. The points made on that link above are good things to think about. Safety of capital is no small thing - that's one in favor for IB. Central clearing in futures is generally safer than fx cash because it is pooled ...

Interactive Brokers - experiences and opinions

Hmm that's an interesting chart level. You can check to see if prices were actually there by right clicking on a bar on the chart and selecting "Time and Sales." A window will pop up allowing you to see all the transactions and price changes during ...

Interactive Brokers - experiences and opinions

I can't disagree with that, well said.

Interactive Brokers - experiences and opinions

The top chart is cash AUD.USD. Pay attention to the session times (open/close). For IB there is a 15 minute daily maintenance where all products are closed for trading between 5-5:14:59 PM Eastern time, reopening at 5:15 PM. What time does ...

Interactive Brokers - experiences and opinions