Reversing a losing system?

Discussion in 'Strategy Building' started by pistolpt, May 21, 2012.

  1. Yes this would work assuming one finds a workable system like you have...

    Many think just "reversing" will give them the keys when in fact the reason they are losing is because they can't overcome execution costs with whatever method they are using.

    I have only found a couple things that work OK on longer timeframes , nothing to write home about so I don't even use them.
     
    #11     May 22, 2012
  2. 2rosy

    2rosy

    I worked with a "professor" who said just that. Lets turn our market making system into a breakout system... do the opposite. I still wonder how much money he lost throughout his career.
     
    #12     May 25, 2012
  3. If you inverted a market making system on an instrument that had a *very fine* tick increment, that could be plausible, I think. So long as it was buying/selling a lot of the liquidity, and exhausting the other market makers. <evil grin>.
     
    #13     May 25, 2012
  4. 2rosy

    2rosy

    geez, maybe your the guy i worked with
     
    #14     May 25, 2012
  5. Stock

    Stock

    The opposite of losing while trading is to not trade at all.
     
    #15     May 25, 2012
  6. Come on fella. Think it through, and post something intelligent.

    Would it be a good idea. Why / why not. Where the error is.

    I'm pretty sure you're smart enough :)
     
    #16     May 25, 2012
  7. If the system consistently lose, you might have to figure out why first.

    If it consistently lose because of commission and spreads, then reversing it wouldn't do you any good.
     
    #17     May 25, 2012
  8. I made $$$ reversing a 100% losing system for 18 months.... till my programmer learned that there was a 0/1 mistake somewhere so we traded it "the right way".

    If it makes $$ who cares - just know it can lose just as fast...
     
    #18     May 28, 2012