Quantifying your loss of edge + retiring a system

Discussion in 'Strategy Building' started by ducatista, May 12, 2020.

  1. virtusa

    virtusa

    That's indeed hilarious. Trading less is only for the "rich", not the poor.
     
    #11     May 12, 2020

  2. Elaborate
     
    #12     May 12, 2020
  3. virtusa

    virtusa

    If you are poor you have to go for it and trade all you can. You need the money.

    If you are "rich" (from trading), you don't have the pressure to make money anymore. On top of that you will have a lot of experience that enables you to reduce your trading to the most promising patterns or hours to trade. You can skip the "inactive" hours. Gives you plenty of time to enjoy life.
     
    #13     May 12, 2020
    qaz and d08 like this.
  4. d08

    d08

    I think the two reasons for this are rather different. One being lower testosterone levels, being less competitive in general. Second is the stress from trading takes its toll, taking on high risks every day wreaks havoc on your health if doing it for many decades.
     
    #14     May 12, 2020
  5. qaz

    qaz

    Yes it depends on the strategy. If you have a trending strategy for example, you would need to compare the strategy deployed during the same trending period. The span of each segment of the strategy should have a reasonable amount of trades to have statistical significance. If it doesn't have that many trades then lengthen the comparison span. eg. Quarterly to Biannual comparison.
     
    #15     May 12, 2020
  6. I understand
     
    #16     May 12, 2020

  7. Correct but money also changes u

    take two separate individuals young irr old but same age the one without money is usually moving faster
     
    #17     May 12, 2020