Most profitable / favorite strategy

Discussion in 'Strategy Building' started by ssrrkk, Feb 8, 2012.

Which is your most profitable or favorite strategy

  1. price action: lower highs higher lows pivots ranges gaps breakouts patterns

    24 vote(s)
    31.6%

  2. pairs trading

    3 vote(s)
    3.9%

  3. stat arb

    2 vote(s)
    2.6%

  4. scalping

    11 vote(s)
    14.5%

  5. tape reading: no charts no rules discretionary buys and sells

    1 vote(s)
    1.3%

  6. technical analysis, indicators

    9 vote(s)
    11.8%

  7. HFT

    3 vote(s)
    3.9%

  8. fundamental valuations + technicals, economics

    2 vote(s)
    2.6%

  9. none of the above but known strategy

    8 vote(s)
    10.5%

  10. completely novel, few knows about it

    13 vote(s)
    17.1%
  1. ssrrkk

    ssrrkk

    Which is your most profitable or favorite strategy.
     
    #1     Feb 8, 2012
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  2. jcl

    jcl

    What's the difference between pairs and stat arb?
     
    #2     Feb 10, 2012
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  3. newwurldmn

    newwurldmn

    risk arb is a pairs strategy, but not stat arb.
    similarly, buying a stock on friday to sell it monday because statistically it goes up over the weekend is stat arb but not pairs.
     
    #3     Feb 10, 2012
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  4. ssrrkk

    ssrrkk

    I would guess that stat arb is the more general and usually larger scale version of pairs. I believe in stat arb, you are dealing with a basket or porftolio of instruments rather than a simple pair and you are spending significant amounts of time figuring out how to combine those to create signals that are mean-reverting and stationary. I could be wrong and I don't claim to use these methods.
     
    #4     Feb 10, 2012
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  5. jcl

    jcl

    Ah, ok, thanks.
     
    #5     Feb 10, 2012
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  6. ssrrkk

    ssrrkk

    I am debating how to interpret this information once we get more votes. The method with the most votes might be the best to follow as many claim it to be the most profitable for them. On the other hand the contrarian would say avoid those like the plague, and go for the one that one no one is using...

    Of course, the best is the method that is completely novel and nobody has ever heard of yet.
     
    #6     Feb 10, 2012
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  7. Mike805

    Mike805

    Ok, but stat arb and HFT both require a bit more than an elementary understanding of markets and trading. I would venture a guess that a majority on ET could not implement a decent stat arb. system let alone have the infrastructure in place to trade it...
     
    #7     Feb 10, 2012
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  8. ssrrkk

    ssrrkk

    Agreed with HFT, you would need to invest large dollars upfront for infrastructure, more than the available capital of your average ETer. However, I believe some professionals/insiders do post on ET, so I was curious.

    For stat arb, I don't think it's out of the realm of ETers. I think there are many on the board who have a pretty good understanding of stats and math. One doesn't need to set up a large-scale operation to do stat arb -- just need to be a little creative, have the ability to work through mathematics, and to run numerical experiments.
     
    #8     Feb 10, 2012
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  9. HATEtheRisk

    HATEtheRisk

    All "technical", just get in and out of the trade.

    Technical Analysis on the highest possible level, perfection in excellence.

    I make no mistakes.

    Never wanted anything else, dont need anything else, wont want anything else.

    Can trade all assett classes, give me what you want, i can trade it.

    :cool: :cool: :cool:
     
    #9     Feb 10, 2012
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  10. americanhero

    americanhero

    I am part of the 5% who make it.

    My strategy is top secret and completely unique.

    I cuod tell you, but then I would have to.... you know what :eek:
     
    #10     Feb 10, 2012
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