You dismiss the strategy because it does not fit into your rigid mental model of the market. What you believe or do not believe is irrelevant.
David Ryan,who does not set off the BS meter is supposedly up 1300% + over the last 3 years..Thats a guy who plays it pretty dam close to Canslim and must have accelerating earnings.. If you listen to these guys,they do not trade options,do not double down and have tight stops... I can barely look at the stocks he trades without barfing,yet these guys supposedly knock the cover off the ball year in and year out... Whats the max leverage you can get holding overnight? Im a deriv/arb and know very little about this
Where did I dismiss the strategy? I dismissed the dude's claim he has 80MM because a strategy like that is not scalable past $50-100k in position size lol. Your fills get worse and worse as the value of your account rises. Only in the most liquid markets, such as SPX futures, rates, and fx, can you deploy basic technical rules for risk management. This is a serious topic in the world of asset management/hedge funds, of which your "rigid mental model of the market" clearly knows nothing about.
If you saw his stream you would see he is in highly liquid names. You dismissing the strategy.... "But this is not a replicable trading strategy lol. It is gambling which means zero to negative edge (losing game). Yes it is possible to “come out” on your wins but if you’re trading frequently then the odds of that goes down to zero."
I realised that there are those who believe and there are those who don't. It's kind of like religion and you can't argue about it.
I'm not saying there can't be value to something like CAN SLIM but can guarantee you that if you decompose returns you'll find that outliers drive the profile. If you talk to discretionary l/s equity guys, no one uses CAN SLIM because those factors tend to already be priced into the stock. Without revealing too much, a strategy that would work is something that's a leading indicator of a subsequent CAN SLIM screen.
We both have clearly different definitions of what we mean by liquid. You might be used to putting on $20k positions, but trading at that level is a completely different experience than trading even $200k per trade much less $1MM+.
I see this more like creationism vs. evolution. But if I am seeking truth, even if I want to believe in a creator, I must also acknowledge empirical evidence right?
The basic Canslim(modifed) principles drive the Ryans,Minervini and KK of the world of MoMo.Its also the same followers/students who win the Investing Challenges...So i strongly disagree with L&S on that one. I have backtested every fundamental system known to man,so its clear its the voodoo one applies that produces outsized returns. I have no reason to doubt KK,but fully realize I could never trade the style he does with meaningful capital. I am far more in tune with Ryan's/Minervini style.. Good discussion