Recently on Facebook there was a big discussion about the Mayweather vs McGregor fight. Someone stated that blacks naturally are better than whites on all levels not just sports. I thought that was a brash bold statement and now without race being even mentioned at all, I have a question. How many creatures of any color, race, creed, religion, background, gender choice, upbringing have successfully accomplished autonomous trading algorithms that will endure the ages in absence of it's creator?
%% Well Mark Brown ;red candlecharts or green candlecharts, any color markets , simply do not work that way..You most likely figured that -even though I'm not a mind reader.LOL
Many, trend following has worked for ever and will continue to work for ever. Read the paper "300 years of Trend Following" by CFM partners The definition of "it works" is always up for discussion though. Not sure what's the connection with boxing.
%% True; +100% of foreclosures are caused by leverage, but that is because of leverage, not because trends dont work ,as you implied.Or fund managers could do like Carl Ichan; he did not gate them from his fund withdrawls in 2008[ so he did not HAVE to sell his stocks]. He got the money out of another fund + gave it back that way .Cool, as winter LOL. But he did cut a loss on stock symbol-- CHK i saw in the news.....
the comparison was intended to illustrate what is important as accomplishments really center around making money. in the money making business nothing excels trading as a vehicle and of the vehicle model choices nothing beats automated trading.
And like HFT, when everyone thinks they can do it and giving it a go, then autonomous trading will fail or at least lose its edge. Human input is always going to be required, the alternative scenario is possibly trading itself will become impossible, all edges will disapear, just random moves as computers swing prices all over the place. Maybe.
there are worlds of research where humans are just in the way, the markets are at the top of that list. human preconception is one of the largest detriments to understanding the markets. human preconception can be captured and capitalized upon better than most any other trading technique.
what, in your educated opinion, makes "automated" special? From my perspective, algorithmic trading has it's own set of risks (plenty of known algo trading blow ups). There are many ways of making money in the markets (systematic and non-systematic, too) and "automated" trading is a small sub-sector of it.
i'm not well educated but i do know that there is a greater chance of a individual blowing up more so than a automated system that an experienced developer has discovered. on both sides of the fence most all will blow up, but every super successful manual trader will tell you they would love to automate their trading. automation allows expansion into more markets and if you truly have a edge, would you not want to exploit it to the fullest possible? think of automation as the electric saw and air nailer of carpentry, could you do it manually yea - but why? m
The sources of alpha and (the sources of risk) are not automation unless you are talking about proper high frequency trading. For example, 80-90% of every one of my strategies is automated, but automation is just a way for me to get more done, there is nothing magical about automated trading. In fact, something that can not be automated has an edge that can probably be retained for longer.