Automated Trading Is Gambling

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

  1. Gambit


    I just mean momentum strategies across a large group of equities. I had to look up what cross sectional meant and I found a description on AHL Man's site. They separated momentum strategies into "cross sectional" and time series momentum (basically trend following)>
    #51     Jan 12, 2018
  2. sle


    Ah! Cross-sectional more or less means that you achieve statistical significance by increasing the number of assets instead of increasing the trading frequency. As an example, when the guy is dating 5 girls at the same time, it's a cross-sectional strategy.
    #52     Jan 12, 2018
    d08 and Gambit like this.
  3. When one trades mechanically using mathematics over a period of decades, and keeps data over the same period,
    and statistically outputs the same positive results over the said period of time, its not gambling!
    It is called "The Exploitation of Statistical Accuracy."
    #53     Jan 13, 2018
    tendimsol likes this.
  4. Yeah, it`s like using your signals for the mechanical system and then you just turn them upside down for the automation.
    #54     Jan 14, 2018
  5. bozhkov


    Any mid/short term trading is a sort of game. You bet and either you win or lose. Algo is just a tool to optimize this process; it helps to estimate your bets and risks, which is not possible with a manual trading.
    #55     Feb 6, 2018
  6. Trading without knowledge - Gambling.
    Trading with knowledge - Gaming.
    Trading with edge - Winning.
    #56     Feb 6, 2018
    tendimsol and tomorton like this.
  7. these two quote do not coexist
    #57     Feb 6, 2018
  8. KellZho


    To me they coexist just fine
    #58     Feb 7, 2018
    bozhkov likes this.
  9. micasa001


    Trading is always gambling. The differences you have to make is to trade with edges.
    #59     Jun 1, 2018
  10. Apropos, the WMCN is more precise.

    #60     Jun 6, 2018