In that case, I'll have a go. Time is a manmade concept. Timeframe should not be a variable in determining position sizing. Instead, what should determine your position sizing is your appetite for risk and the edge of your system - if that is even ...

Position Size vs Time Frame

I share your concern. To the people who played the USDCAD, do you mind sharing your projected risk/reward profile on this trade? (Unless your goal is to 'let it run', of course)

james16 Chart Thread

I've been interested in defining, and objectively identifying trends (even in hindsight). Can you somehow back up this statement? I saw you make a similar statement once before, then referring to a trend being a candlestick with the body >50% of the ...

Position Size vs Time Frame

I tend to put this song on repeat. If you pay attention to the lyrics they can be related to the market. http://www.youtube.com/watch?v=fbGkxcY7YFU

What kind of music you hear while you trade?

This will be a classic post Hanover - putting all the important insights you've been uncovering to the people around here in a single post.

On the topic of BS in trading forums...

Can you be more specific about the size of the orders? Could it be the that a participant is pinging?

somethin unusual on the level 2

Will it also lessen risk if you adjust your position size so that you always risk the same fraction of your account? I believe this is what most traders do around here, as the '2% rule' is one of the most frequently stated concepts on this forum.

why is everyone so afraid to average down?

My CADJPY got triggered. Problem areas are 91 minor, 91.5, 92 minor. Lets see how it runs.

james16 Chart Thread

Depends on how serious you are about it. You can give your account details to a random guy here on the forum. Another - more expensive - option is visiting a local notary.

Account audited by a third party for verification success?

You know that you can download historical data from MT4? Hotkey F2 and you can save it into a .csv file for example.

Return Differential Arbitrage

I feel I have to defend some issues. First of all, all pairs trades are essentially directional bets of the traded assets. The only "hedge" is the fact that the two traded assets historically have been correlated, often because they operate within ...

Return Differential Arbitrage

You're right, there is some correlation between EURUSD and NZDUSD because of the fact that the USD is reflected in both pairs. However, I would argue that the correlation between these two currencies is pretty low, because both the euro and the NZD ...

Return Differential Arbitrage

True

Return Differential Arbitrage

I am not sure I fully understand what you're trying to say in the OP. In academic use, arbitrage is the opportunity for a "risk free" profit. I'd like start off by emphasizing that statistical arbitrage is in no way risk free. Differential ...

Return Differential Arbitrage

Yesterday I installed a risk analysis tool for Excel, and this was the first issue I implemented. After many many iterations, I can confirm ForexQuant and kk007's answer.

A "hardcore" mathematics question

Interesting. Lets assume prices are driven by random noise and information. Here, information determines the path that the price follows, whereas noise reflects short term deviations from this path. As a trader you attempt to identify the ...

james16 Chart Thread

It should be very well possible, and I wouldn't be suprised if many people run their bots all the time. It isn't risk free though. Here's my three main points. You should always consider slippage, requotes, and you shouldn't overleverage so that you ...

Broker Arbitrage

Traders can be exploited by stop-hunting. Traders can possibly arbitrage when there are price differences (read: diverging feeds), by buying at the lower price offered and selling at the higher price offered. Of course slippage, requotes etc. make ...

Common Data?

Aren't like 70% of the world's transactions on financial markets done by the trading algorithms of HF traders? I do have the feeling most firms use high frequency trading mostly for proprietary purposes though. url This is a nice article I read a ...

High Frequency Trading!

My broker uses 1:100 leverage. At the moment I risk 2% per trade, which comes down to < 1:10 effectively. Like people already mentioned, we shouldn't care about leverage, because it has to be offset by sizing. Nevertheless, I don't like the fact ...

How much leverage you use ?