Wednesday, January 16, 2008

No Takers for the Trading Puzzle?

So far no-one has commented on the trading puzzle. The strategies are very simple. At the end of the week I will reveal all, whether I have any responses or not. I the meantime, my simulated trading of the Australian Share Price Index is going well and I am feeling more and more confident that maybe I really could do this. I will wait though till I have statistically significant results before going live. I am using very tight stops. The stops really define the risk/reward ratio and the size of the contract (near $A150,000) becomes less important. At the moment I am only getting a fraction of the return possible on a single contract because I am getting out of trades very fast. If I gave each trade more leeway I would have higher returns but also higher volatility or risk. I've averaged $A150 per day so far but recent days are much better than that. I'm also beginning to have some success trading mini-NIkkei contracts.

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