The simulations performed in this section have to a certain degree some up to most of their trade entries based on randomness. Meaning that a stock position is taken based on the outcome of a biased coin toss. The rationale being that if a lot of trade indicators behave as if random, why not go all the way, and make the entry random.

November 10, 2011

Over the last few days, at my preferred forum, there has been much debate on the value of old and proven trading strategies. After having presented my own version of what a random entry system could look like, it almost appeared as if it was not enough.

So, for comparison purposes, using the same simulator and the same data set over the same trading period, I opted to test a published random entry system.

November 06, 2011

Using Schachermayer's equation: Σ(Q.*ΔP) to express all the generated profits by a trading strategy; what would be the solution to double the profits? Since you cannot change the series of price differentials, you would need to double the quantity of all the trades. This is the same as saying you need to double the bet size Σ(2Q.*ΔP).

November 04, 2011

In my preceding test, I mentioned that my methods bulldozed over the charts. So I decided to add a little finesse. Most of the trades are still random entries. My intent was more to provide a smoother transition from trade to trade and at the same time extract a bit more profits.

October 31, 2011

What do you do for an encore? You have shown that using random entries can be profitable. You have shown that using random entries can be highly profitable. You have shown that using random entries can be extremely profitable and scalable to your available capital. What do you do for an encore?

October 30, 2011

After my last commentary where I was showing performance results of some charts using random entries, I had to make a formal test: take one of the data sets, go through the routine for each stock and then tally the results. If the random entries had some value as a concept, then running the script over a dataset should demonstrate either its weaknesses or its strengths.

October 28, 2011

Over the past two days, in trying to answer a question on random entries, I tried to design a trading strategy that would use an excessively high number of random entries.

Only two stocks were tested and I posted elsewhere the results as follow.