Index futures automation

Discussion in 'Journals' started by hilmy83, Jul 3, 2022.

Can a fully automated trading strategy work in the long run?

  1. YES!

    56 vote(s)
    66.7%
  2. Hell naw.

    15 vote(s)
    17.9%
  3. I don't know, I got my own trading to worry about.

    13 vote(s)
    15.5%
  1. Exactly. It's not clear the threshold is "a few million a year", but there is a line and if you cross it you will have your lunch eaten.
     
    #11     Jul 3, 2022
  2. Millionaire

    Millionaire

    The way i see it, the more scalable a system is, the lower it is quality wise (eg lower Sharpe ratio, MAR ratio, Profit Factor or whatever metric you like to use) .

    eg. If you want a something with a Sharpe ratio above 2.0 it wont be nearly as scalable as a method with a Sharpe ratio below 1.0.

    The exception being Rentec Medallion, who have found a way of trading with a Sharpe ratio above 2.0 and can still make Billions a year with it :wtf:
     
    Last edited: Jul 3, 2022
    #12     Jul 3, 2022
    Tradess0610 and Bad_Badness like this.
  3. ondafringe

    ondafringe

    Is this opinion or fact? If fact, can/will you cite your source?
     
    #13     Jul 3, 2022
  4. Experience is my source. lol. I'm a quant trader.
     
    #14     Jul 3, 2022
    ondafringe likes this.
  5. ondafringe

    ondafringe

    Thanks. I was just curious.
     
    #15     Jul 3, 2022
  6. 2 trades per day, 80% of success with a holding period of 1 hour. I am going to call bullshit on this one.
    Do you know how much profit would you turn into if you compound that return? Something insane.
     
    #16     Jul 4, 2022
  7. Measuring the percentage of trades that are profitable is useless. It's very easy to get this number over 80%. Just set a very low stop-loss and take profits when you are a tiny fraction of a percent green on the trade. Presto. You don't need a trading strategy at all to do this. But doing so is useless and will drain your account with spreads and commissions.
     
    #17     Jul 4, 2022
  8. You are the one that let us know that 80% in the first place. You don't sound like a quant my guy.
     
    #18     Jul 4, 2022
  9. Incorrect. Someone else is making that claim. I earn a full time income trading quantitatively but I'm certainly not here to convince you of that. You are free to disregard my advice if you feel the math is wrong.
     
    #19     Jul 4, 2022
  10. really?
     
    #20     Jul 4, 2022