Automated Trading Is Gambling

Discussion in 'Automated Trading' started by fordewind, Nov 4, 2017.

  1. %%
    Good points, Love TTrade, many internet definitions are made up nonsense. I asked an old REALTOR friend about a buying a specific lakefront house, for resale/profit ?? He said ''that would gambling [meaning stupid risk]'' I thought to myself, that is not really gambling , so i said ''why??'' REALTOR said that lake house has been moved . So it was not really gambling, but it would have been a stupid risk. Strangely ,several years later, a flood broke the dam on that lake, dry as bone... ..:caution::cool:
     
    #41     Nov 10, 2017
  2. Mysteron

    Mysteron

    Its not difficult to find a simple strategy that is profitable provided that trading costs (commission, spread and slippage) are small enough. In that respect retail traders are at a major disadvantage compared with pros.
     
    #42     Nov 14, 2017
    777 likes this.
  3. sle

    sle

    Actually, exactly the opposite. Your comissions might be higher, but your liquidity requirements are lower by orders of magnitude. I can think of numerous cross-sectional strategies where as a retail trader it would be easy to achieve Sharpe of 1-1.5 after transaction costs that are simply impossible for an institutional trader.
     
    #43     Nov 14, 2017
    777 likes this.
  4. %% But many local sherriffs + police know the difference; try card counting in a casino + they will help you OUT so to speak LOL.

    I gambled for quarters[00.25] in a pool hall as a kid. OOps, sorry i just gave away a price level LOL. Some people use gambling meaning stupid risk.....:cool:
     
    #44     Dec 20, 2017
  5. Stdray

    Stdray

    Are you asking or saying? Because trading itself is gambling and auto trading is no different.
     
    #45     Dec 28, 2017
  6. fordewind

    fordewind

    It`s a statement.i`m taking all the responsibility for that statement.Automated trading is pure gambling, so the variables are just.I found that the dice game variables are the closest that may have some success in autotrading.You are free to prove me wrong,though.Its my humble opinion and what i`ve found over the years of playing with the automation.
     
    #46     Dec 28, 2017
  7. fordewind

    fordewind

    Automated trading is only possible if you apply some gambling theory to it.Period.
     
    #47     Dec 28, 2017
  8. fordewind

    fordewind

    There`s WORLD between auto and discretionary trading!
     
    #48     Dec 28, 2017
  9. Gambit

    Gambit

    Cross sectional momentum over a longer time period (1 yr), market neutral?
     
  10. sle

    sle

    Not sure what you mean, but yes, longer hold strategies. Usually in equities or credit (i.e. bonds or preferred stock).