Survival bias will skew positive results as the record of the hedge fund industry no longer includes closed and failed hedge funds.
Yeah. And ya know I knew when I wrote that response to Hawaiian that someone would point out the dangers of political ideology in an AI tutor. That is exactly why I said it should be open source. Granted only super-ultra geeks could make any sense of anything... as opposed to you and I who are dummies.... but... yes, any model will need to have ZERO political leanings. And they will. Just give it time. AI is going to bring a lot of good things to humanity. The bad things? To deny their possibilities would be as foolish and naive as one can get. I have no opinion on where that will go. If I had to guess however... big evils will emerge too. BUT... my post was about the good it can and will bring. The battle of good vs. evil.... that one is out of the realm from which I write. By choice mind you. Not naive, but I try to lock that stuff out. You almost have to.
Mostly agree. I'm a half-full glass person myself. But lately, very lately, I've been questioning that mindset. lol
Buddy you got that all wrong. They are not interested in our soda pop and candy bar money. They want money from the accounts of other big players.
Do whales actually give a hoot about who they're stealing from? I doubt it. It's just that small players are the easier prey to trap. Speaking of which, if the amateurs focus their attention more on evading traps than making money, they would probably do a hell lot better.
We don't have enough $$$ to interest them. And they could care less about trapping us...running our stops.... They are interested in doing that to each other. We retail traders just get caught in the middle of their "rumble in the jungle" and OUR SLs get hit.
After over 30 years of trading, i came to realize that's just a myth that Wall Street wants you to believe. They want you to buy into the thinking that you are just a pawn with no choice of your own. And yes, they do set traps all the time, not just for the small fries but for each other as well. So I suggest traders, big or small, to get out of your herd mentality.
@volpri, There is not a single word about big players and account size in my post. You are twisting what I wrote because you don't seem to understand how the trading game works. It seems to me that your definition of a 'Pro' is limited to only to big players (mutual funds, banks) which feed off commissions, asset management fees and currency spreads. Big players (mutual funds) think in terms of relative performance to the SPX (depending on the fund). (Also, mutual funds need to have most of their assets invested.) Even though these are big players, they are not necessarily relying on 'Behavioral Alpha,' since ultimately it is the client who pays them, not necessarily the fund’s performance. That's the game they play. My definition of a 'pro' trader is someone whose income is entirely dependent on their trading performance, and not on commissions or asset management fees. Such traders can trade independently, not necessarily for a fund. There aren't that many traders who live off their trading without relying on any other source of income. One cannot achieve this without 'Behavioral Alpha,' at least not on a consistent basis. These traders are the real 'pros' in my definition, and over the long run (since trading is a combination of skill and luck), they will make money from weaker traders (amateurs, retail traders, or even big players), regardless of account size Big players (e.g., mutual funds and banks) do move the market and create order flow and price patterns, but moving the market is not the same as making consistent profits. It seems like only @schizo is one of the few who understands that Wall Street is a myth and that one should avoid the herd mentality.