LTCM , Quants and averaging

[CavaliereVerde]

From what I understand LTCM turned into a big martingale.
They were PhDs bu my idea of Quant trader is different.
My idea of Quant trading is Jim Simons and his Medallion.

 

[hefoba]

@Pure Pip Producer I never talked about " average down" so please show we where I wrote about that here on T2Win.

I can understand that 3 months track record gives you power but for me, under 12 months track record I do not look at the system. Even if the god of trading is trading it.

Lets see in July 2021 how your track record is.

 

[hefoba]

From what I understand LTCM turned into a big martingale.
They were PhDs bu my idea of Quant trader is different.
My idea of Quant trading is Jim Simons and his Medallion.

Good book to read....

When Genius Failed - Wikipedia

en.wikipedia.org

 

[Pure Pip Producer]

@Pure Pip Producer I never talked about " average down" so please show we where I wrote about that here on T2Win.

You don't need to talk about it. I can see it by looking at your Darwinex Trading Journal :

That's a really beautifful average down.. that we all know how it will finish.

Your investors are not investors. They are simply unconscious and/or greedy people.

Once again, i'm sorry to be honest. I know that people like me a lot, until i'm honest with them...

But it's for your sake, i swear... 🙏

I can understand that 3 months track record gives you power but for me, under 12 months track record I do not look at the system. Even if the god of trading is trading it.

Lets see in July 2021 how your track record is.

I've around 2 years and 3 months of Native Darwinex Track-Record. Just check! I've no secret :

(XRT +7.23%) + (CTA +6.95%) + (KIT +3.56%) + (EON -3.64%) = +14.1%

Drawdown max : -10.89%

 

[CavaliereVerde]

We will compare EOD and PDC on August 2021

😸

 

[hefoba]

Ok I understand. How I trade will do that everything I write will be bad.
Good approach to life and also lots of books written about that.

 

[Pure Pip Producer]

Not really, you can speak... but to ask to those who have a better Ra, Rs or La to help you.
Not to speak like you know things in trading.
Because if you knew things, you wouldn't have that Rs or La... and you would find something more original to do than the same of the 99.9% of the traders.


By the way, i've read 200 books about trading.
Almost all bullshits.
Probably only 10 was needed to increase the trading knowledge.
Now, I don't read anything because of that.
I'm more at the point to write my own book than to read others...

 

[Pure Pip Producer]

We will compare EOD and PDC on August 2021

😸

My pleasure!

 

[KlondikeFX]

OK, if we want to look at this from a more nuanced point of view, IMO there is a difference between grid trading and averaging into a position.

If you have a mean-reverting strategy that enters short on overbought levels and vice versa. It can be efficient to average into your position under certain circumstances as sometimes the exaggeration continues even further than you (or your algorithm) predicted.

Correctly averaging into a position is rather difficult because it's a thin line between a smart average down and stupid grid trading or "getting married" to your position.

 

[itstradingtime]

I'm more at the point to write my own book than to read others...

Will your book be about averaging down? lol

 

[CavaliereVerde]

I am undecided about movig the topic to the external category about psychology and risk management...
https://www.trade2win.com/forums/psychology-risk-money-management.73/
But after it would be out of my jurisdiction of moderator....

BTW interesting debate! 👍

 

[Pure Pip Producer]

OK, if we want to look at this from a more nuanced point of view, IMO there is a difference between grid trading and averaging into a position.

If you have a mean-reverting strategy that enters short on overbought levels and vice versa. It can be efficient to average into your position under certain circumstances as sometimes the exaggeration continues even further than you (or your algorithm) predicted.

Correctly averaging into a position is rather difficult because it's a thin line between a smart average down and stupid grid trading or "getting married" to your position.

Of course, grid is worse than the simple averaging down.
But averaging down that means that someone can pyramid in the other side of you.
So, the best thing you must do is to exit and jump to the other temporal serie.
But for that, you must be aware of the temporal series.
Those of the arborescence (tree structure) of the possibles.
Those you would have written before...
Written on the right side of the screen...
A really different way to think the Trading.
And different way to think the Future.

 

[hefoba]

OK, if we want to look at this from a more nuanced point of view, IMO there is a difference between grid trading and averaging into a position.

If you have a mean-reverting strategy that enters short on overbought levels and vice versa. It can be efficient to average into your position under certain circumstances as sometimes the exaggeration continues even further than you (or your algorithm) predicted.

Correctly averaging into a position is rather difficult because it's a thin line between a smart average down and stupid grid trading or "getting married" to your position.

One free game and one expensive book by Van Tharp talks about position sizing. https://www.trade2win.com/threads/book-position-sizing-trading-simulation-game.238510/ Have you test the game ?