[SIUYA]

Originally Posted by mslk »

but look at this graph of their performance ... couldn't someone do something as simple as invest $500 in each of their picks and completely crush the market?

Attachment 25048

thanks
-mslk

yes - but past performance is no guarantee of future performance.

[mslk]

Originally Posted by TheNegotiator »

I don't think it really tells you anything. It could be a certain strategy out of hundreds which they cherry picked as doing well during that period. People have ambiguous descriptions of their strategies they are selling generally are for a reason. If it is so profitable, what's the need to sell it?

there is a huge industry of people selling newsletters, investment advice, stock picks. some of their picks are good and some are bad. you can't generalize and say if someone has a winning strategy they wouldn't sell it. if that was the case you wouldn't have hedge funds or trading firms. but back to this particular newsletter, the graph shows all of their picks for the last year - now assuming this data is correct wouldn't my original simple strategy of work?

thanks
-mslk

[SIUYA]

Originally Posted by mslk »

t...... you can't generalize and say if someone has a winning strategy they wouldn't sell it. if that was the case you wouldn't have hedge funds or trading firms.
-mslk

there are plenty of winning strategies around, its the application of them that gets sold by hedge funds and trading firms.
......hedge funds make their money via leverage - leverage of using other peoples money and applying a strategy....sometimes this strategy works sometimes it does not.
....trading firms get their leverage using other people (ie; many traders bums on seats) and either applying a lot of strategies, or the same strategy over many markets.

If they sat on their own and applied the same strategy then their returns on a small amount of money does not compare to trading and leveraging up either other peoples money or other traders.

both really only get paid and make big money via performance.
Newsletters, brokers and sellers of strategies only make their money via recommendations and not the application of them.....

and there is a massive massive MASSIVE difference between having a strategy that even though it may be successful, and running that strategy as a business.