How is this possible

Discussion in 'Strategy Building' started by ChrisMMM, Jun 29, 2007.



  1. Your system trades $10,000.00

    They trade $10,000,000,000.00
     
    #11     Jul 1, 2007
  2. nkhoi

    nkhoi

    lets see how 'sharp' is your 'edge' when you go live:D
     
    #12     Jul 1, 2007
  3. Found another Forum to vent on Bluegar? :D
     
    #13     Jul 1, 2007
  4. maxpi

    maxpi

    Job loyalty is not a two way street nowadays. I maintain that if somebody is really bright, and they are working for somebody else, and they discover the holy grail, that they will not divulge it to the employer. They will be opening an IB account surreptitiously and trading from their home computer and retiring in place on the job..... at least that is what I would do.
     
    #14     Jul 1, 2007
  5. So are you implying smart fund managers leave to make their own personal fortunes and the managers left behind are the under-performers? It seems to me that could very well be true. From my own experience I can make more on a percentage basis trading a smaller amount. If I go too low then commissions take a toll but there is definitely a "sweet spot" equity amount that makes the most percentage-wise (which I'm usually over). So if a professional fund manager sees he can get a much better return trading a smaller amount, and his potential profits are more than his salary + perks then why not leave? That is, providing he has enough equity personally to pull it off!
     
    #15     Jul 1, 2007
  6. You should put the results you attained to the test. there is an good possibility that the results you attained are simply due to luck. the test will show you if your strategy is robust, or if it has simply gotten lucky over the tested period. There have been many papers published on testing strategies for randomness.
     
    #16     Jul 11, 2007
  7. The_Boosh

    The_Boosh

    Would you mind posting some links? Thanks.
     
    #17     Jul 11, 2007
  8. sure,

    Here is one from UC Irvine, if you have a basic understanding of stats, it is pretty straight forward. PM me if you want more information on actually doing the test :

    http://ideas.repec.org/p/wpa/wuwpfi/0205003.html
     
    #18     Jul 11, 2007

  9. Reading this reply........an experienced trader will know that this guy is not to be taken seriously. Money management is not an important part of system design.......lol and then building a mechanical trading system is easier than trading manually......lol. I remember when i built my first mechanical system, the numbers said that in 3yrs i would clear 500million, i learnt my lesson over the next three months that trading overall is not that easy. After trading a minimum of live trading for six months, then start making inferences about your system. This also depends on your trade frequency......a high frequency would give you a good result after six months of live trading. See you in six moonths.......
     
    #19     Jul 11, 2007
  10. GTG

    GTG

    ChrisMMM, what tools, and programming languages did you use?
     
    #20     Aug 7, 2007