OK, I'll attempt to do that here, I'll have to dummy run it, my concern is loading myself up with extra paper trade tasks as I trade EOD and have limited time then, but I could at least file my trades a few minutes after EOD if need be Ty for the suggestion
Missed this response. Fair enough. The market is expansive enough and there's enough ways to trade that I can't say beyond a shadow of a doubt that I am correct. I'll just say what I do works on any instrument, future or time frame. Sure different things have their tendencies, but that is related to experience. Which to me is a part of context. Trading without experience and context, to me is a niche. Because without understanding context if it changes and you're doing a set strategy either A) It won't work and you'll lose or B) Even if you know not to trade during certain conditions, what if those conditions last for months or a year? it still means you won't be making anything.
Ty for the insights. I've long suspected OPM would be an onerous path to take, I get halfway to considering it and the disadvantages start piling up on me
< don't understand why you purposely trading a time that you know has less liquidity > There’s good mispricing in the afterhours, and also more gently volatility, leading to better r/r < Do you just mean position sizes worth 100,000 grand? > Yes, $100k the market can cough on even $100k < why not just do quicker trades and move to ES Futures or SPY ETF? > I find that incredible; the expectation that one strategy just automatically relocates over to a different instrument, e.g. Spy and yet it seems to be a common expectation, or not unusual. I feel like pinching myself to check I’m not dreaming - Is that what experienced traders automatically think?
Ty for the insight that most funds take the view that most good traders aren't using anything unique or have any other type of edge outside of using the previous things you mentioned I agree that Daytrading is a rare skill (I can do it in niche areas only), but I believe that some people do have such a skill < Traditional route I just meant building years of results and than using the results for additional funding. > So, with years of results its possible? - But Where or how to apply for funding? How many years of results, 3? 10?
< I'll just say what I do works on any instrument, future or time frame. > I find that amazing. Almost magical thinking, like a universal formula. I marvel at how different traders' views can be. < Trading without experience and context, to me is a niche > I don't agree, I think the experience and context related exclusively to a particular defines "niche" - Surely, it does. Not just in trading but many things e.g. Like a diesel mechanic with experience and context in a particular area of Bobcat gearboxes.
Yes, I have. Exhaustly. I find that other instruments can often look OK for a while and might backtest OK but we all know how fickle and illusionary backtests can be. I find it very difficult to both "tweak and trade", when I'm retesting models I get right into it, and very experimental, an outlook which is prone to disaster when applied to trading.
I saw when I wrote that, that I left it open for that response. I will try to phrase things in a more direct manner here. Because technically yes I can see how you can view what I said that way. If what you're doing is not a niche and will work in virtually any environment as well, than I don't understand why it's so incredulous to you, to think that it might work for other vehicles as well. If you're saying it doesn't work in any environment and only for certain products, than to me personally I would consider that a niche. There's not a difference in views here and there's nothing magical about it. There is definitely a universal formula(Math+psychological+understanding how the market operates), particularly for liquid instruments that have a lot of interest from large parties. Here's just one example and piece of the puzzle of how it's universal, that I am sure most people are already aware of: No large participate is just slamming down on a buy or sell button, they would price themselves out. So we know their goal is to get a net weighted average position regardless if that's a long or short position. In order to get filled they are going to apply their capital in a way to entice and bully other traders(be that retail other large participates or etc) in a position and than upon forcing them out, will help create the liquidity they need to build that net weighted average. This is just one example and one piece of the puzzle that yes is universal and nothing surprising or magical about it. It doesn't even matter. If what you're doing works consistently than of course keep doing it. Just as confounded as you are about my comments, that's how confounded I am about yours because there certainly is a universal formula and if you're not using it and it still works consistently in all market environments, that's really impressive to me. Even than I would classify that still as a niche, simply because it only works on certain instruments, which means you found some imbalance in that particular instrument and you're taking advantage of it. Don't want to play semantics, which it's possible at this point we both might be doing by accident. I want to end the conversation if we can. We can even say you're right and I am wrong. But wanted to explain this last part as to why I think the way I do.
Ty for clarifying. I get your view now. I think that, by your description, I am "niche", I just trade a few instruments, Volatility and a few big Tech stocks I do ALSO trade the broad market. SP500, but it only works in ideal setups. (I don't think that I ever said I wasn't 'niche') But its an interesting for me to view it that way as niche, I hadn't considered it that way before. Agreed, I've no time for semantics, I think you're views are helpful, if only because I like contrasting views. < There is definitely a universal formula > I remain doubtful about this. The example given is well known, but I think the devil is in the details, and more a myth than a reality. Surely, it'd be the privilege of giant and wicked banks (JPM, GS etc) playing market wizards? And if they're that big they have corresponding liquidity concerns Surely such a universal formula would be arbitraged away? For example, I know of a very apparent setup where a universal formula could apply, its frustratingly technical, and I'm convinced that some people are exploiting it, and I'm incensed with envy. But this just shows how rare the application of universal formula is, even when its a very valid usecase. My best guess at a universal formula would be via the artful application of TA. via a set of rules. I kind of do this occasionally via Pennant setups (but even then I convert it to Maths) and preconditions have to apply. Ty for the conversation