Automated Trading Is Gambling

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

  1. Gambit

    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

    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
  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

    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
    tomorton likes this.
  7. these two quote do not coexist
     
    #57     Feb 6, 2018
  8. KellZho

    KellZho

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