yeah, and thats exactly the point, why they then came back again to success, some of them, bcuz they ve created their own strategies - only if a trader can let flow his own personality in his methods, they will work. IMO
Using the old opening indications on NYSE was my favorite old edge. There were always a handful of stocks everyday where you could get a couple thousand shares and flip them to the specialist for the opening NYSE print. I remember each options ex feeling like Xmas morning because there'd be so much free money on the opening indications. It was a sad day when that game ended.
yes, Richard Dennis is his name. Respect for him, he is a real master, we all should look up to him and call him our god. He made 200M$ for himself when he was in his mid 30s..... All technical, no fundamentals....just got in and out of the trade..... respect richard....
Confucius say "forever strong word and wong wong time" IF you were to participate in any trend dicusssions you would encounter complaints to the effect that trend trading hasn't "worked" for more than a decade. Not "working" is purportedly why Richard Dennis left the biz. Better yet, look up William Eckhard't YTD return. Between the two turtle strategies 20 HHV/10 LLV vs 55HHV/20 LLV, the latter is apt to "work" a little better by being a wider channel but you won't be entering anywhere near tops or bottoms, hence you need a definite trend and will be scratching a lot of entries. Better focus on position sizing. Commodities, more universal in acceptance and substitutibility, "trend" better than equities. Psst, in BOTH directions. Options with time decay.......... Hmmm might be a clue to the use of a different strategy. Ask any carpenter or mechanic about the right tool for the job. Your moniker "says it all". RISK is to be embraced. The one's with consistent gains are RISK takers. In contrast to academics, beta is NOT a measure of risk. Neither is VIX Better "edges" come from seasonality. Being more nimble than an institution, and the ability to be flat is indeed...........an edge.
Has anybody mentioned the old specialist crosses pre hybrid market. Prior to 2008. You hit an ecn and market to the specialist to get his print. You would see a block order cross the openbook down/up. Specialist would have to gather all orders to fill the block and it would be an advantageous print. Or prior to Reg NMS when ecns would cross each other. Just hit the arca at 20 and sell to inet at 20.15. Ah those were the good ol' days.
Risk management and emotional control are also part of the edge. When everyone is freaking out, saying focused on the process, rather than the outcome, seems to help. PS........ not sure you know much about the oldest, most time tested edge ever found, which can produce 35% win rates at times...... arb strategies come and go, just like their practitioners.
Position sizing is worthless without a positive-expectation strategy. And trend trading ALWAYS works, at least in the aggregate. The trick is to look beyond drag-ass strategies like the turtle strategy. You have to be both quick like the hare and consistent like the tortoise to win the race these days. It's still doable, it's just a bit harder than the glory days of Dennis and Eckhardt.
I think you need to revisit the concept of a REAL EDGE. Money Management and risk control are not EDGES. Emotional control is not exactly a requirement either. Obviously you lack the real experience & observation, but try getting through your head. There were guys, who were able to make 20-30k/month with bullets, consistently, while in reality having bad discipline and at total lack of money management & risk control. Thats how good the edge was
I do agree with HYDROBLUNT, love the name by the way, that back in the day you could trip and find money in the market. The edge was that good back then. Once those edges dried up the only ones that survived were the real traders who had discipline.