I don't "talk down" anyone, and apologize if anyone takes it that way. From our perch, we see a lot of "styles" and "strategies" - all we try to do is offer suggestions based on the realities we have seen over the years....if someone has a great strategy, then please let us help make you more money by using ours. For example, we have one trader in the Netherlands who has made $millions over the last 4 years...and I really have no real clue as to how he does it...I do know that he is generally hedged pretty well overnight and doesn't show up on our risk monitors... he wanted to take some time off...I suggested that he teach someone else what he was doing, he did, and now that guy is making mone for him....."if it works, keep doing it...don't listen to nay-sayers" .... Don
Not trying to defend the Brights.... but based on the commissions you appear to pay on your PnL Thread posts, you are the last person I'd ever expect to see criticizing someone else's rates. Or are you just hitting ECN's all day?
I see, okay I misunderstood, I thought you basicly pushed one style of trading and dissed the rest. That's great that you allow your traders the freedom to trade their own styles, and obvioulsy you have some incredible traders on board! Many firms only push one style, so it gets repetitive. Can't you develop some software to mimic the trades of your better traders?) I think that's where the real money might be made
Too many variables involved...I still maintain that the most valuable computer program is the one that stuck between a traders left ear and right ear, LOL. We certainly do have some good programs to "help" with the speed of certain strategies, of course. Don
Don, I've followed quite a few of your convos on this particular forum (Prop Firms). I've seen it before where you kind of dismiss ET'ers that make certain claims against Bright. But on this particular thread you've addressed just about every question or claim. Though I'm sure much of this is repetitive shit you've said time and time again on other threads, I do appreciate your taking the time to make things clear and state your opinion.
Honestly i still dont get it how can people make money playing pairs cause at some point you have to load 1 side of the trade. If pair trading was so good people would all be making million,s Hedge- funds etc if i go long qqqq and short spy is that called a pair - ?
A zillion hedge funds do pairs trading - Goldman has many groups using sophisticated software trading pairs...I don't see how the concept can seem alien, or even "new" for that matter. Regardless of anything else, my brother is one of the best traders on the planet, trading only our money (no investors or anything) and is actively trading about 200 pairs these days... I don't think he would be doing so if we weren't making good money. As I've said before, I'm glad he's trading a big chunk of my money as well, LOL. It's nothing new: 20 year history here, for example. http://www.melbournecentre.com.au/ResearchGrants/21.Chng_Discussion Paper.pdf "Pairs-trading has at least a 20 year history on Wall Street. There are several reasons for its popularity. First, it is simple to understand and execute. And since it does not normally evoke frequent intraday trading, pairs-trading can be cost-feasibly automated. Second, cashflow and/or financial ratio based valuation models, which are potentially subjected to huge error margins, are not required. In pairs-trading, valuation is relative and the position is often near market-neutral. Lastly, it has sufficient flexibility to accommodate various investment styles e.g. pairs matched within sectors, size, index/non-index, growth/value etc." Don