Simple solution: trade CME futures. Regulated market, no BS. Same price dynamics as the spot market.

EDIT: I misread this post. Oops. Just to clarify for those reading along: I use another CPA for my own taxes ( url ). According to my CPA, the spot forex market by default falls under 988 rules, not 1256. Furthermore, a trader can elect 1256 ...

I think there is a language issue. "Drawdowns" are events which lower trading capital. There are not usually conscious choices by the trader. : All traders will have them, regardless of how skilled. Perhaps you mean "stop loss"? It sounds like you ...

It is important to point out that there are no rules against "insider trading" on currencies. In the US, the SEC does not regulate Forex trading at all, so in a large sense banks can do whatever they want.

That is the greatest idea ever!! From now on, I am going to declare myself a bank robber. It fits on so many levels. That should get some attention at parties.

I wondered about this when I was writing the Excel sheet. I tried reading the documentation on the STDDEV function, and found no mention of zero entries, nor blank entries. It is possible that zeroes make the STDDEV calculation inaccurate. I can't ...

All your numbers up to the standard deviation look correct. I want to note that if you have a trading system with a 75% win rate and a 366/150 win/loss ratio, that is a very very good system. Kudos to you. If there is an error, it is likely in your ...

I wrote an essay on this a few months ago. It got buried in one of the other forums, and nobody reads it anymore. http://www.forexfactory.com/forexforum/showthread.php?t=7672

You need to be careful on how time is being measured. Most historical data assumes GMT for the timezone. If you care enough to want the time in your own zone, you will have to do the conversion yourself. I have seen cases where some historical data ...

http://www.safehaven.com/article-3132.htm Summary: Commercials are the ones you should be paying attention to. They often signal a reversal.

How odd that 3 pages of this thread have been written, and not a single one references the essay I wrote earlier this year: http://www.forexfactory.com/forexforum/showthread.php?t=7672 In this essay, you will find a reference to the Monte-Carlo ...

Jim, can you tell me under what circumstances a trader would incur the AMT? I would like to know what to avoid.

Uhhh, a chart?

Expectancy, as far as I know, has no specific meaning. They can be used for relative comparison. Values greater than zero will have positive returns, and negative values means it's a loser. Nothing beyond that.

No, it doesn't. The Kelly value is a formula-derived number, and it tells the trader what percentage of the total capital to risk on each trade. This number is determined from the risk/reward and win rates. Choosing percentages less than this value ...

Thank you. I'm very glad it was useful to you. This is a really great example. When I first wrote the essay, I was thinking of including an EA example which didn't have a fixed S/L and T/P level. For simplicity I stuck with Firebird. Your ...

This is an important point. Good traders can earn this much just trading solo, so it depends on your priorities. If a winning strategy uses low leverage and small gains per trade (1-2%), that is ideal for a fund style of trading. Most funds shy away ...

How bizzarre; I can't edit my previous posts anymore. I wanted to add one more bit of info to this thread. One other popular measurement of performance is the Sortino Ratio. Sortino is much like the Sharpe, except the variance is ...

:Chuckle: I remember those days. I think the flaw is that you have not tested this system for longer than a few months. We have been in a heavily ranging market since May. Try testing from January and see how it does.

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