Traders' Roundtable

Ed Seykota has shed some light on this issue on his website: "Trading against imbalances presupposes an "equilibrium value" and a negative feedback loop that intends to restore the state to equilibrium. You might consider the following processes: micro-organism growth in a culture bro...

It's probably an innate human bias to call the "counter trend". Time to reread William Eckhardt's chapter in the New Market Wizards.

I have always found that it is hard to put a meaningful stop loss for mean-reverting systems - you know, the type of stoploss that reduces risk, boosts reward/risk ratio, while not compromising reliablity. Since the entry of a mean-reverting system is aganist the immediate orderflow of the trend tha...

Dymas, glad to hear that you have solved the issue by yourself. Their data service is very straightforward indeed and I haven't encountered any serious problem so far.

OK, now the green up arrow makes sense

Anyone would like to share experience using Interactive Brokers to trade foreign markets (base = US, base currency = USD)? I want to trade stocks in Australia, UK, France, German, Japan, and Hong Kong, all these are denominated in local currencies of the respective countries. I chatted with an IB re...

Why is June 2003 singled out on the chart?

That's why many "market wizards" (eg, Marcus, Seykota, Hite) warned aganist volatility? When volatility gets insane, you get out (suppose that you had gotten in when volatility/implied volaility was low) and stay out (suppose that you didn't get in when implied volatility was low)? The way...

OK, since there is no reply, I went on to subscribe the service anyway. The service is actaully very good, simple to use, fast, and seems to be reseaonably reliable. I subscribed to 2 of their survices. 1. World futures 2. US stock historical data back to 1950. Anyone here have any idea how/where to...

That's true, when the stop is loose, say >= 2ATR, the position is less likely being stopped out, but then the trader has to forget about making high impact trade (high R-muliple trades), becuase his trades' impact ratio will suffer a great deal, ie, Average Profit/Average Loss ratio. In other words,...

Interesting article. "This is only really an emergency stop as most of the time the breakout will follow through and not go anywhere near this stop loss." - if only it were that ideal! My experience is that most breakouts do not work, and that is exactly why most people cannot trade breako...

Hi, Anyone is using Norgate data? (Are they reliable, accurate, "complete" etc) I am interested in two of their products. 1. EOD world futures data with extensive historical data going into the 70s 2. Historical database of delisted US equities from 1950 I am currently using Reuters Datali...

I love MetaStock end of day version

So, seems that NYBOT now has two Russell 2000 based futures contracts:

The full-size contract has a multiple of 500 and the mini-sized one with a mutliple of 100, just like the to-be-delisted ER2.

Let's hope that volume picks up in the new mini-contracts.

There is yet another alternative: take over ICE.

A question: is ICE now a US company or a British company? ICE seems to be quite evasive in directly answering this question.

Thanks for the information. Seems the war among exchanges are gaining momentum. "It only costs 42 cents to mail a letter, why not give it a try", It does cost 42 cents to send a mail nowadays? I sent a few mails out using 1 37-cent stamp, and then 2 2-cent stamps, working out to be 41 cent...

Does anyone know the reason that CME is delisting the E-mini Russell 2000 futures contract? The contract has been well received by the trading community, and liquidity is excellent, I am curious why they would like to close a good product, and if there is any replacement for this contract, besides t...

Well, apparently I was wrong, instead of going down, now looks like it is trending up again - maybe it will prove me wrong again

Now that rice has established its down trend for sure, it might be a good time to ride the thing down - that's the beauty of trading, like Marty Schwartz put it in his "Pit Bull" book, AC/DC, it works both ways :

I'll avoid MXP contracts in the future, made a few trades in MXP before, and this hasn't happened to me yet, but it's a matter of time. Trading is difficult enough, one doesn't want these negative black swans at all. The pity is, the volume in MXP is not that bad at all, how come it has such strange...