Could only be backtested if it could be coded. This couldnt be coded, like attempting to code a painting.
When you are shorting a company that eventually goes bankrupt (its value to zero), it almost doesn't matter if you started at $100, $10 or $5, they all make 100% return.
Trader 1: has no edge/screentime whatsoever, randomly enters the market during the day, yet has rigid stop loss/profit targets and adheres to them religiously once they put on a trade. Trader 2: has significant screentime/edge, and only enters the market when their edge tells them to, yet constantly lowers/removes stop loss orders from the market and constantly lowers/ignores profit targets once they have entered a trade. Trader 1 will finish the week,month,year with more money than trader 2.
I agree trader 2 is retarded because they apparently have a SIGNIFICANT EDGE in this scenario, yet they FUCK it up over and over! People really do that? The traders I've known who constantly throw discipline out the window never had an edge in the first place and definitely not a significant edge.
There are countless ways to f up trading. It's either because of bad trading plan or flaws in execution. The latter needs to be addressed in the former. Typically the trading plan sucks in some way that creates too much loss. This is most clear in mechanical trading where the code is the plan, thus there's much less room for lack of discipline. It is a much longer path however, because of so many pitfalls and possibilities for flaws, but can at least be addressed in robust ways over time instead of getting that mother of all losses.
Be aware of analyst that recommend stocks or investments that they themselves do not own. Ask financial advisers to disclose their (short term) personal position and results.
Yes , trade-invest smaller than GM, DAL, LEH + Bear Stearns.I like imported food but homegrown is better, so i could do without a lot of imported food, if i had to.100%/+ of foreclosures are caused by excess debt.Thanks for the question