Systematic Traders - How many systems do you run?

Discussion in 'Strategy Building' started by gmst, Aug 6, 2012.

How many systematic strategies do you run concurrently?

  1. <3

    35 vote(s)
    50.7%
  2. 3-5

    9 vote(s)
    13.0%
  3. 6-8

    3 vote(s)
    4.3%
  4. 9-12

    6 vote(s)
    8.7%
  5. >12

    16 vote(s)
    23.2%
  1. gmst

    gmst

    That is one market - multiple strategies. So, yes its considered multiple systems. Cheers.
     
    #11     Aug 11, 2012
  2. dom993

    dom993

    Very nice! Out of curiosity:

    - how often does the system trade on a given market?
    - are the majority of trades intraday, or held for several days or weeks?
     
    #12     Aug 11, 2012
  3. dom993

    dom993

    Contrary to jcl, I don't doubt the # (I am assuming most of these are cranked out by PAL or similar).

    However, that seem really on the high side from a money-management point of view ... at least if you treat each strategy as totally independent from the other ones, hence allocating it its own "full-time" margin + max-drawdown requirements. How do you proceed in this area?
     
    #13     Aug 11, 2012
  4. dom993

    dom993


    Given most markets are either positively or negatively correlated, taking all trades on all markets would be a good way to fast bankruptcy ... how do you address the correlation aspects ?
     
    #14     Aug 11, 2012
  5. The most was 12 but usually only 8 or 9 of them were turrned on.

    Was a team of three and we were trading ~$4.5 million of (levered) exposure.

    One strategy was the core primary then about 2 or 3 others were solid and the rest were very hit or miss. Overall volume in the end was ~5M shares a day.

    Stopped trading because we couldn't get the rates any longer.
     
    #15     Aug 11, 2012
  6. I think the devil is in the details when it comes to using one strategy across multiple markets. I've been doing that same thing for about 4 months now in 4 markets (ES, CL, Euro and NG) and while there are times when positions fire across multiple markets in the same direction, I've found that I am typically trading either none, 1 or 2 markets at the same time, but have yet to trade all 4 at the same time or even 3. Even the percentage of times I am trading 2 is fairly low, despite correlations between those markets.
     
    #16     Aug 11, 2012
  7. 3 systems, individualized, multiple parameters (including entry times etc.), ES, NQ, 6A, 6E, 6J, FGBL, ZB, ZN...day and swing trades
     
    #17     Aug 11, 2012
  8. If markets are correlated, does that mean we only need to trade 1 index ??

    I dont think so ya... there are many inefficiencies... and to tell you the answer is like giving you a 10 mil cheque :)
     
    #18     Aug 12, 2012
  9. jcl

    jcl

    Trading correlated markets can in the worst case get the same return, it can never get a worse return. Unless, of course, some of the markets are not profitable with that system.
     
    #19     Aug 13, 2012
  10. Correlated market concerns and (back-testing) in mho is highly overrated. Walk-forward optimization of the entire portfolio works well for me!:)
     
    #20     Aug 13, 2012