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There is nothing wrong with quants as people, of course. Except that periodically they blow up a few hedge funds, banks, etc just to proceed to find another research job due to their highly mathematical research skills.
My argument was simple: every trade has a "noise" level, where you enter and it goes against you. Typically beginner traders always flip flop from long to short due to this noise level while trying to determine what is the market direction.
This indecision causes losses and above all frustration.
Second, there are scalpers who try and scalp back and forth while not getting executed on orders, exercise risk to reward that mathematically hard to beat, etc. Sadly, the brokerage world in its competitive nature has dropped the margins to levels that simply create over leveraged traders on a daily basis.
We must acknowledge that we live in the world of algos, HFTs, etc and we just cant compete with their speed of execution, ability to recognize discrepancies, therefore I suggest to lower the number of transactions, increase the time frame in the hopes that one could find his niche.
There are always exception to the rule, but what I said above would help most.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Can you help answer these questions from other members on NexusFi?
My above analysis can be extended to any kind of strategy with more complex payoff and distribution behavior (in the residual term ep). It only doesn't apply to unskilled trading. Indeed, unskilled traders should lower their number of transactions. The same is true of unskilled surgeons - you should carry out as few surgeries as possible to maximize your success rate.
If you have an edge you want to press that edge by trading it more. I get it.
But I think that was not at all the intention of the illustration which is why I said you can argue anything, but it's probably only for sake of argument and not actually beneficial to the end discussion.
OY VEY a+B, I (Am) X (Not an Academic) +Realistic*MAX (100%) = Happy
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Wall street is dominated by quants today. I have nothing against quantitative theories and conclusions.
But, the reality is that I can present a simple argument based on REAL EXPERIENCE while they "prove me wrong" with theories and numbers.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
I should dispel this myth. There's no quant fund with nanosecond execution. Everyone gets a fixed length of fiber to the order gateway, through which the transmission time already puts you in the microsecond region.
Unfortunately, experience has nearly no forecasting ability in this field.
Whether micro or nano, the retail trader has no access to that.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
I truly respect any opinion, especially in this area where experience from different aspects could shed light on many areas. I was just hoping for more evidence that retail does have a chance with higher frequency of trading (despite my observations from day one since future trading was offered online). I hope you understand that all I am trying to do is help most traders.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]