A Retail's Day Trading Experiment

Discussion in 'Trading' started by ironchef, Sep 20, 2023.

  1. TheMordy

    TheMordy

    I've found the emotional and psychological difference between demo and real $ is UGE,
    but the difference between $1k and $100k is not so significant.

    So stop demo, and trade 1k, or even less.
     
    #41     Sep 21, 2023
    ironchef, padutrader and Jzwu2017 like this.
  2. rb7

    rb7

    Not it's not.
    Most of those 'prod firms' used simulated trading environment.
    On top of that, they have all sort of restrictions/rules/constraints that you have to follow.

    'Prop firms' are for the ones without money who think they can get rich quickly and without sacrifice.
     
    #42     Sep 21, 2023
    ironchef likes this.
  3. rb7

    rb7

    If your live trading is half as good as your paper trading, then you're in business.
    You'll only know when you'll switch and your approach of downsizing is a good one.
     
    #43     Sep 21, 2023
    Jzwu2017, ironchef and padutrader like this.
  4. padutrader

    padutrader

    like me...at 67 years what the fu*ck, do i do, to kill time.....i need to get rich before I die...so in , like,... few seconds so it is perfect for me
     
    Last edited: Sep 21, 2023
    #44     Sep 21, 2023
  5. ironchef

    ironchef

    This is my final post on this thread.

    Today I closed my paper trade early because the stock I traded was ranging and that, for a trend follower with tight loss control, is like death by a thousand cuts. After 20 trades in less than an hour, a couple of decent runs did produce a net small profit.

    Here is my own assessment of the "method"

    1. I looked at the statistics of 1500 data point. For a method relying on a small difference between two large numbers, it is underpowered. To make it statistically significant, I think I need at least a couple of years of paper trades to determine if it really has a positive expectancy or is just a statistical anomaly.

    2. I generated a daily profit histogram, a very crude Gaussian centered around $500.

    3. The rules are not quantifiable, more like pattern recognition and I don't know how to automate pattern recognition. It is like voodoo.

    4. Fill and time lags are big issues as the price moved quite a bit from click to click and since we are looking at the difference between two big numbers for a small profit/loss, it can easily go the other way.

    My own prediction is going live will produce a random outcome. In a couple of months, if the result is good I will create a new thread. If you don't see one, assume the outcome is terrible and I am too embarrass to report.

    I will certainly make some money if I write a book selling the method as a "Lazy Trader's Simple Way To Become A Millionaire Trader" or selling a trading course, or a subscription trading website. :D:D:D:D
     
    Last edited: Sep 21, 2023
    #45     Sep 21, 2023
  6. ironchef

    ironchef

    Good luck @padutrader.

    But you are a philosopher, of all the people on ET, you should understand that money isn't what is important in life. The funny thing is, the less you think about it, the more you get.

    In the US we really don't need a lot to get by. After a 2021 life changing event in the family, I realized having a purpose, a family and good health are way more important than money and it is not sour grapes because I am already there.

    Best wishes to you sir.
     
    #46     Sep 21, 2023
  7. Jzwu2017

    Jzwu2017

    I thought you had some edge of capturing big moves/trends producing a few big wins amidst a sea of small losses. If your profit/loss sizes are similar in your post above I think you don’t have an edge.
     
    #47     Sep 21, 2023
    ironchef likes this.
  8. padutrader

    padutrader

    i was just replying to our comrade ETian.
    if money was important i would have been more disciplined in my trading......and a you know trading is not about luck....it is simple logic
     
    #48     Sep 21, 2023
    ironchef likes this.
  9. ironchef

    ironchef

    Take care.
     
    #49     Sep 21, 2023
    padutrader likes this.
  10. ironchef

    ironchef

    It is tricky.

    Every day my stocks typically have a couple of "moves" but I don't know when they are going to move. As you know they don't tell you hey I am going to go straight up, come join in.

    As a trend follower with strict capital preservation rules, it is a difficult balancing act. Most days I could find one (or two) without been stopped out but there is no guarantee. Today, I reentered the market an hour ago, found one decent move and booked another $500, on paper.
     
    #50     Sep 21, 2023