Our 400,000 Trade Test Proves Using Stops Is Not Very Bright

Discussion in 'Risk Management' started by marketsurfer, Mar 11, 2016.

  1. botpro

    botpro

    Stops hurt if sent to the broker.
    Stops should be handled locally not remotely by the broker.

    Some tight and also some wide stops hurt the performance of most systems.
    It depends on the system and also on the parameters of the traded instrument, especially with options.

    So, what is it exactly that you still don't grasp?
     
    #101     Mar 12, 2016
  2. samuel11

    samuel11

    Sure! Here is my contribution: Surf is wrong because he makes way too many flawed assumptions and cannot grasp the difference between theory and practice.

    And you are doing the same thing haha
     
    #102     Mar 12, 2016

  3. It doesn't matter. Amounts have nothing to do with our bet.

    Bottom line is You lost the bet and refuse to pay.

    Tells me all I need to know.

    I am very surprised and disappointed about that situation-- your prodigious derivative knowledge takes second place to not paying a lost bet in the real world.
     
    #103     Mar 12, 2016
    botpro likes this.
  4. The statistically based algorithm wouldn't know or even care about the pattern or chart interval. It's simply a predator (if designed properly) that estimates shifts in supply and demand at advantageous price points. A good discretionary trader can visually do this, but his execution better be quick
     
    #104     Mar 12, 2016
    dartmus and marketsurfer like this.
  5. botpro

    botpro

    What you wrote above is unclear, ie. it's wishi-washi...
    Can you also be specific in what you exactly mean?
     
    #105     Mar 12, 2016
  6. samuel11

    samuel11

    A stop on options? Please!

    Suppose you sell your put on a $100 stock for $3. Expiration in 90 days.

    A week later, some “unexpected” event makes the price drop to 50 at the open. Where was your stop again?

    Where you completely fail in your logic, is that you did not sell that put to a computer. You sold it to a human being, as any MM will adjust price and vols either manually or automatically.

    You can place an order to cover your put for $5 or whatever stupid price you think it is worth, but the owner of that put will make sure you feel the pain and only transact with you at their price. And that is when you will blow up, despite your “superior intellectual capabilities”, because you run tests on simulated data lol
     
    #106     Mar 12, 2016
  7. As I said, their "reality tunnel" has blinded them to the facts. Reality does not not exist for them beyond the "chart".

    They simply can't understand. Like religious fanatics arguing flat earth ----
     
    #107     Mar 12, 2016
  8. samuel11

    samuel11

    If you don’t like it, don’t read it!
     
    #108     Mar 12, 2016
  9. destriero

    destriero


    F*ck no, I had zero intention of paying off the $10K. Ask yourself why I would wager a larger sum when you had repeatedly (for two hours) avoided providing the proof required by the previous wager. IT WAS BAIT. I had zero intention of paying-out. I was toying with the idea of $100K, but obviously you would've balked. I was only interested in proving that the digital was a joke in terms of $risk -- and you dove right in.
     
    #109     Mar 12, 2016
  10. Wow! The bet was for $1000. I never expected $10,000. So you baited me ---you must be proud of yourself --- You just don't want to pay.
     
    #110     Mar 12, 2016