If someone is managing big amounts, circumstances would dictate that they will trade in this way. If they consistently make 30% a year they are god. Give that same person a $10 000 account to manage (and tell that person their only income is 90% of the profits) and I guarantee you they'll be scalping/swinging for every pip/point they can scrape using price action/indicators only. Anyways, have been a big fan of your work for a long time, thanks for your contributions, they have been an inspiration. Keep it up!
...a big fan of your work for a long time, thanks for your contributions, they have been an inspiration. Keep it up! Brett...ditto, thanks!
More important and meaningful to me is the elegance of the math. I've yet to come across or hear of a strategy that works everytime. Stat Arb is probably the closest thing to a perfect strategy and look at how crowded that space has become. I agree with Brett (above) that the market's discounting mechanism is an complex web, but what's always struck me as awesome is the elegance of the math. Take any short-term strategy and apply it over time and 99% of the time there will be a greater than average amount of randomness. That's why much of trading comes down to talent, intuition, decisiveness, and discipline. And of course, this will garner the normal response from those who think that they are Albert Einstien's grandson and are going to invent the ultimate trading system. To them I'll say: Fat chance. Bottom line is you don't even know if it's possible.
Mkts are not complex. The interactions among the different macro economic data and interpretations of that data as it relates to expectations and DESIRES within the mkt players positions might make the mkt seem complex as positions and thoughts are in constant flux................KISS still works, always has...........Always will.