There is a holy grail for trading or buying stocks. Insider information. The lady that just got caught, I think she was estimated to have made 25 million. She gets a 3 year prison sentence that will probably be reduced. Then I'll imagine she doesn't go to a regular jail but a federal prison, but not sure about that. Oh and that huge $25,000 fine. So 3 years, a hot and a cot. she comes out buff, and she still probably has millions stashed away. I'd say that's a holy grail, and she'll not do the full 3 years.
Finally a real Holy Grail appear. The only problem (biggest problem) is that you don't know when your strategy begin not to work .. or when it begin to work again.
The answer to this whole threath is : one moment.... here it comes.... ah, what is it ??? It is = = = """ STATISTICS """". Holy shit, thats all. Just statistics, hmm, maybe i should build a few up, would answer all my stupid quesions........
Statistics, eh ? Some edges are there. I only know of one, personally. That's more the realm of math geeks - quants, arbitrageurs and HFT. Like I said before, lots of ways to skin the cat. Fixating on a particular strategy or approach limits the mind to other possibilities. Jim Simmons fields a squadron of PhD's and he returns +50% YoY, over the last 10 years, if I'm not mistaken. Depends on the angle. I'm not that smart so I use other approaches.
No no no... you dont need to be a math geek.... no no no You just must make statistics of everything you do, Just really everything. You know, then you can really see, what is going on, in the markets, in you mind, in your behaviour, in you rules - and how to make it better to most perfect point how it is possible for you... That is what i mean with STATISTICS, they are KEY. Of course a lot of work, but it is worth it....
Hey HATEtheRick, Could you eleborate here? What sort of things do you do with statistics? Thanks, Christophe
I just stumbled on this thread. Your idea crystallizes some strange sense I've been getting that the acceleration of the moving average direction might be worth checking. Thanks for the post.
Yes, why not. Statistics belong to my business like fire to hell.... for example in strategy creation process: made 100 examples with this a specific situation A. made 100 examples with a specific situation B. " " " " C. and so on. -> compare them, filter the signals, learn from it, fix the bugs. ---------- u can do that, also with trade managment + risk managment strategies / ideas, what ever you want. ---------- Besides that, u can make strategies of your real trading action. -> How many winning trades did you make in one and how many loosers. what was your feelings/emotions on that trades. Did you follow your rules ? Yes/ no, why not ? -> Which setups do you trade how often ? How often long / short, how many winners / losers you have on long / short ? -> Where are your biggest winner / losers ? ---------- Psychology -> What are your goals for the day/week/month ? How did the change ? How often did you reach them, what did you do to reach them ? ---------- And so on. Compare all and see the light... (u can work ur ass off with this shit) good luck (statistics are key)