Traders' Roundtable

Only asking as there was an article in the Investors Chronicle which proposed that it did. Wrong cause-effect relationship here or not?

http://www.investorschronicle.co.uk/con ... 05108.html

sluggo and PK - let me think about this. I need to articulate properly what I'm seeing in my mind!

What is the relationship between volatility and degree of certainty of an outcome? My own observations about stocks and markets are that the higher the degree of certainty of an outcome the higher the volatility one must put up with in order to hold the position. Does anyone have any clues as to why...

What defines a neural network exactly? Is the term as used in financial markets just a load of bollocks?
Is it just a system that is complicated simply because it has a lot of rules programmed into it?

If one has selected say a 2 ATR stop as the initial stop, as per the Turtle rules, is it a good idea to select a techical stop within the 2 ATR stop with the aim of perhaps keeping the majority of of the losses at 1 ATR?

Thanks for comments.

Higher frequency trading implies a shorter average trade duration (or you would simply end up with too many positions for available capital). Trade duration is determined by how close your stops are to the current price. Shorter trade duration implies tighter stops. Tighter stops means you have to ...

What is the relationship between the % of equity to bet on each trade and the frequency of trades taken?

Presumably the greater the frequency of signals, the smaller the % of account equity each bet should be?

As I understand it one could have a maximum of 10 units long and 10 units short. I have often toyed with the idea that instead of adding additional units into the same security, trying to develop a porfolio of 20 different stocks of 1 unit each. Would this be successful in reducing portfolio heat as...

I was wondering anyone here has a differing additional unit entry rules to the standard breakout - for e.g. breakout from congestion - assume standard turtle rules apply addition into a trend which has already formed? - is there a jusifitcation for adding units every 1N instead of 1/2N because of co...

Assuming that both companies were equally risky, then B would indeed be preferable. If stock A had a better covenant and balance sheet than B, then I'd say that A was probably the better trade. "Those who have knowledge don't predict. Those who predict don't have knowledge." Lao Tzu, 6th ...

Thank you PK. I do think there is an assumption that stock B would face a rockier ride in collecting the 8 ATR target profit. Assuming that both companies were equally risky, then B would indeed be preferable. If stock A had a better covenant and balance sheet than B, then I'd say that A was probabl...

Which is the more preferable stock to trade?

A) a stock that moves 30% which is equal to an 8 ATR target

B) a stock that moves 50% which is also equal to an 8 ATR target