Bad idea?

Discussion in 'App Development' started by 931, Sep 6, 2020.

  1. 931


    Basically flipping positions at certain price depending on midprice while expecting movement.

    Can someone tell if its bad idea?
    Would slippage be bad?

    Need to measure if spread will eat the idea or not.
    Atm my simulation does not support that idea well.
    Last edited: Sep 6, 2020
    murray t turtle likes this.
  2. Tavurth


    Mid price of what?
    Slippage on how many trades / hour?

    If a sim doesn't support the idea, why are you even considering it?

    Sharpe Ratio of 2+ is viable in sim, anything less will likely be eaten away by real-time bugs or market slippage.
  3. tommcginnis


    Famously bad idea.

    Entry(s) should be strong.
    Exit(s) should be max(π) -- which generally means max(E[π]). :rolleyes:

    Ergo -- nearly zero connection with an exit on one side, and an entry on the other.

  4. %%
    IF simulator does not even like it/most likely will not work.
    Selling in middle can work;
    most anything can work in an uptrending bullmarket
    House flips can work/huge bid ask there.:caution::caution: :cool::cool::cool::cool::cool::cool::cool:
  5. ah so the prices have a middle?
  6. 931


    Mid as a flipping point. bid , ask as triggers.
    Simulation would need to be bid ask quote based i guess.
    Lots of data...

    Idea would be seeking for high volume moments without caring for market direction.

    Using ibkr the slippages are already bad, maybe on forex....
  7. IamaMars


    To get specific answers, you need to ask specific questions.
    For this purpose, I would advise you to provide a graph of a particular situation (but one that you use most often) so that we can evaluate it and tell you how much it deserves attention. It is extremely difficult to think about what you don't understand or can't imagine, and this would save you a lot of time.
    And in general, it is competent and regular statistics that helps to assess the profitability of the approach, so you can always understand whether you should continue in the same direction or should radically change the approach and go beyond the usual limits. Each situation can be studied from different angles...
    931 likes this.