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The Electronic Local method

  #60 (permalink)

Berlin, Europe
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
Fat Tails's Avatar
Posts: 9,801 since Mar 2010
Thanks: 4,238 given, 26,445 received

I saw this post on the Electronic Local Blog as well. Obviously, you cannot create a winning roulette system without cheating, as the casino always has an edge. If somebody else has an edge you should not bet, and no money management system in the world can help you here. Actually if you do not have an edge

- the best thing is not to bet,
- the second best thing is to bet all at once, and if you are lucky you win, although the probability is < 50%,
- the worst thing is any money management system that keeps you in the game for a longer time, because the longer you play, the higher the probability to lose it all!

So Tom is terribly wrong with his application of money management to roulette. But this mistake is no proof that his trading approach does not work. Actually, I like some elements of his trading style

- his charts are not clustered, but he has just two moving averages
- he uses two CCIs as trend filters
- he looks at bid and ask traded volume
- he looks at Keltner Channels to avoid "Greater Fool Trades"
- he takes a few trades per day only

All this makes sense.

bluerosetc View Post
I also used to follow his blog until he posted something about his father having created a winning roulette system. When someone questioned this, he went on defending it in the comments by telling how he believes money managment can provide an edge where no edge exists.

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