Good sports bettors make good traders?

[darthtrader]

edit:
just posted something but a total tangent on quants. Better to stick to this original thread, very interesting post.

[Reaver]

	Quote:	OAC
	May be your are on their side and happy to collect a secured paycheck. I don't know how long you have been on this forum, most of us are entrepreneurs and Goldman, Harvard, Merril don't impress us.

AMEN.

[Soultrader]

From what I have seen, most traders whether quant or prop based come from a mathematical or programming background. (not all but most)

The fact is that automated strategies are the norm amongst instituions which ends up being the majority of the volume traded each day. All system developers I have encountered so far are all traders are well in some way or another. Each has their own way of approaching and trading the markets.

However, the best traders I have seen are those with a good balance of mechanical and discretionary. The ones who are able to understand when to trust the system and when not to are the ones that can avoid massive drawdowns. Controlling risk is perhaps one of the most important factors in trading successfully.

I think a discretionary trader with a non-math background can still find the edge in charts. Many hedge funds employ similar strategies so when they are wrong, you are likely to see a good sell-off or short covering. Hence a trend?

One of the main strategies I like to employ at the moment is countering the typical trading idea. In other words, strategies that are based on pattern failures, breakout failures, price rejection, etc... Many intraday strategies I am developing exploit the mistakes of others and knowing that either buy or sell orders will trigger. I do this over multiple timeframes.

I recently had a chance to read the Turtle System position sizing formula which I think is a good way to manage risk. Whether or not a retail trader uses this formula, I think it is important to have a position sizing system per strategy. Whether this is based on the size of your capital, volatility, winning % of your strategy, etc...

[OAC]

	Quote:	aiki14
	I have been on the forum 2 weeks, I am an entrepreneur as well, people who make billions impress me. Especially in the arena where I choose currently to endeavor.

I guess you are may be only abour 20, or 21 years old ?
Meet our long-time member James_gsx, he recently turned 20 and he thinks he is over the hill.

[aiki14]

	Quote:	OAC
	I guess you are may be only abour 20, or 21 years old ? Meet our long-time member James_gsx, he recently turned 20 and he thinks he is over the hill.

Is that supposed to make sense?

[OAC]

	Quote:	aiki14
	Is that supposed to make sense?

Yes, it is supposed to make sense unless you are 14, Aiki14.

[BlowFish]

Interesting you should mention the turtles - the qualities that where sought out there where simply the ability to follow a set of simple rules without question or second guessing. Nothing intellectual at all. Those that did made money those that didn't lost. Simple really. If you look at the Market Wizards - a whole bunch of background and personalties only a couple I would consider as intellectual heavyweights (Sekoyta springs to mind for example)

It is my experience that 'smart' people and 'professionals' have a particularly hard time trading mainly because the things that work in business and other walks of life just don't cut it in the markets. Its easier to learn from scratch than to have to 'unlearn' a whole bunch of behaviours that served you well in life but are quite damaging in the markets. If certain mindsets have allowed you to enjoy bountiful success in other endeavours its gonna be damn hard to let go if those things (speaking from bitter experience here).

Coming back to the thread title does being a sports bettor provide a foundation? I dunno I'm waiting to be persuaded. Does being a mathematician, lawyer, Doctor, CEO of a large corp, Academic, Entrepreneur etc. I'd have to say no.

[RichardBlank]

My answer is yes.

Those with a system and can keep consistent will do well.


Richard

[Trvlwanderer]

	Quote:	OAC
	I guess you are may be only abour 20, or 21 years old ? Meet our long-time member James_gsx, he recently turned 20 and he thinks he is over the hill.

So age and number of posts or length on this forum has anything to do with knowledge or trading skill?

I see my little trader IQ tag says 5%.....he, he. I just had to add another "jack" to this thread.

The more systems I have built, the less I use. Adapt to quants and black boxes and trade the tape. That seems to be the most consistently productive system I have ever come up with. Less squiggly lines, less hours behind the screen. Adjust with the markets.

But.....without money management, no system can be successful.