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Interesting Eric, have you tested any data with a random trade generator
that proves that money management is more important?
I did a lot of testing at one time.
What details are you interested in.
I have also tested the idea that the 1st and last hour of trading mean
something.
Really, the market isn't able to absorb sudden increases in volume. I guess
I should ask what market, where and when.
I'm kind of disappointed, I thought someone here could come up with a good
definition of non-randomness.
It's kind of fun though to see some persons get really bent out of shape
about it though.
Brent
-----Original Message-----
From: Eric Svendsen [mailto:esvendsen@xxxxxxxx]
Sent: Friday, January 10, 2003 12:41 PM
To: Brent
Cc: OmegaList
Subject: Re: Random walk
A random trade generator illustrates that money management is more important
to successful trading than good entries.
Care to share some details?
On the otherhand, I would suggest 1st and last hour of trading day are
intent driven = non-random.
The market is not able to absorb the sudden increases in volume, and so
there is pressure in a particular direction.
Institutional traders will act both at particular times and on some days
more than others.
Eric Svendsen
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