Flat Earth Trading - YouTube

Discussion in 'Trading' started by rugbyjoe75, Aug 26, 2024.

  1. Came across this trading experiment on YouTube. Over a year, they made 100 random (flip coins, darts, scrabble tiles, etc) trades with a fairly simple trailing stop system. Pretty positive results. Purpose was to show you can make money with just position management alone. Would love to see what ET thinks.

    https://www.youtube.com/@FlatEarthTradingSociety
     
    jbusse likes this.
  2. maxinger

    maxinger

    upload_2024-8-27_7-36-34.jpeg

    Congrats! You
    have found the holy grail.

    Unfortunately, it is not entertaining.

    You still have 1 million other videos to watch.
    Good Luck watching.
     
  3. This is so stupid on so many levels. First, apparently he doesn't understand he should be compensated for risk. There's a thing called a drift, no? The market expects you to earn the risk free rate + be compensated for risk. So if you hold stocks you will generally always be making money. If they beat the S&P on a risk adjusted basis in that timeframe, based on this example, it was pure luck. He should run some monte carols simulations with 10000s of scenarios and 1000s of stocks and he will realize his conclusions much quicker. The example is awful.

    Secondly, for some people exit is more important for others entry is. It depends on the skillset. My profit exits are excellent, my stops are OK, but I'm not too patient on the entry (although I have improved this a lot by focusing on it). Each person is different. Also, the only reason stop losses are so important is that it increases the tail and your risk of ruin. It doesn't generally increase your expected value. I think it's important for people to understand this, as it makes it easier to stop out.
     
  4. Flipping a coin isn't 50/50.
     
  5. S2007S

    S2007S


    So maybe like 47/53
     
  6. Sekiyo

    Sekiyo

    Amazing! He made money while the index is up 26% over 1 year !

    IMG_1217.jpeg

    The experiment proves that everyone can make money during a bull market.

    He said long/short but my guess is he mostly went long (based on the 13ema slope) especially since he’s doing momentum trading.

    IMO what you trade is important because your PnL is a derivative of the underlying. When you trade is important because easy money vs hard pennies. Entry and exit are equally important because you can’t make money buying the top or selling the bottom.

    Yes … Cutting losers and letting winners run is a well known saying but this alone won’t make money over time.

    https://m.youtube.com/@FinancialWisdom is also a nice channel.
     
    Last edited: Aug 27, 2024
    nitrene likes this.
  7. Sekiyo

    Sekiyo

    https://www.youtube.com/@TraderLion They also have nice guests.
    Well I know this might not be the best thread to share Channels,
    But for Equity traders I think it's worth a look.
     
  8. S2007S

    S2007S

    There is a youtuber who claims to have turned $500 into $5 million in a very short period of time...im like yep just another youtuber trying to sell their services to all the fools who will believing such garbage. I mean that kinda return beats any hedgefund that has ever existed!
     
  9. Sekiyo

    Sekiyo

    The more money you have … the less percent returns you make.

    I think it’s doable to turn 500 into millions in a few years.

    But I’d rather be a hedgefund and make 10% per annum. It beats (money wise) the gigantic returns (percent wise) of the 500 to millions trader.

    1B x 10% is still 100M
     
  10. S2007S

    S2007S


    The actual percentage of believable trading content on YouTube is probably less than. 5%!

    Anyone can mock up up an imagine or a play account to make it look like they turned 500 to 5 million.....its a ploy to get people to sign up to their courses. It's nothing but fake content....they never show actual proof and if they do show "proof" it's probably all photoshoped anyway.
     
    #10     Aug 27, 2024
    p0box4 and Sekiyo like this.