Keeping a Strategy Secret

[BlowFish 10]

Thread necromancy to make a point that had already been 'done' hmmmm. That wasn't' directed at the last two posters by the way.

 

A thread necromancy emoticon would be great!!!

[JPx2 10]

I'm just a bum trader, retired and living off pennies as well.

However, it would appear to me that some of the comments provided by 'nay sayers' are a bit too rough.

 

You do need to get more results, from real down to earth traders, in order to build your systems integrity.

 

I have had the opportunity to beta test several programs and provide daily results to the programmer. I would be happy to paper-trade your system, then, and only then, put it into my live account to see the actual results.

 

One problem that I've heard often is programmers want us to believe the results we see running their systems in a 'Demo'. Demo's are worthless as they don't have the market players searching the pit for basket trades, trades in 'holding', etc.....they are just waiting to scalp your buy/sell by pushing/pulling trades. A 'demo' doesn't have that market interference so anyone can look good running a 'demo' because no actual trades are sent to the pits.

 

You should have a few honest people.....(still have them sign a non-disclosure & non-compete contract)....to kick the tires and drive it a few miles.

Best of Luck,

Jim

Columbus, IN.

 

"I have been driven so many times upon my knee's by the overwhelming conviction that I had no other place to go" Abraham Lincoln

[TWI 10]

The problem with looking at demo's and then trading reality is the cost and slippage which are often more than you may imagine, particualrly when you account for the potential for complete screw ups ocassionally and fast or thin markets producing large slippage.

One demonstration I have used many times is to show an equity curve of a system and then progressively add 1tick slippage to it per order and see how quickly it degrades. This is the problem when you move from trading 10's or 100's of thousands into trading 100+million.

In my early days I worked for a London fund and we built up a big oats position, upon exit we sent it limit down 2 days running, still see it on the chart now. That was a lesson.

I more recently worked for a multi bln fund focussed on metals. The effect that their positioning would have on flat price was substantial and certainly far greater than most algo systems could sustain. The interesting point here was that their orders would tend to trigger the algos in their direction and it seems there can come a point where throwing huge volume behind and order can actually create a cascade where you benefit. For most of us I think that execution is where the money is made and lost

Edited March 1, 2009 by TWI

[JPx2 10]

......there is still so much I have to learn.....even in retirement.

You brought more attention to other issues I hadn't thought about.

Thx for your input.....it was appreciated.

Regards,

JPx2

[great1one 10]

I keep my primary strategy secret but have helped out new traders with a simplified version

[Jene 10]

There are many strategy which can be followed by investors

 

Scalping:

Scalping is a trading strategy where trader attempt to make small profits with small price fluctuations, the Scalper will place ten to hundreds trades in a single day because they believed that small moves are easier to trace than larger moves.

 

Momentum

This strategy usually involves trading on news releases or finding strong trending moves supported by high volume. One type of momentum trader will buy on news releases and ride a trend until it exhibits signs of reversal.

[sevensa 10]

There are many strategy which can be followed by investors

 

Scalping:

Scalping is a trading strategy where trader attempt to make small profits with small price fluctuations, the Scalper will place ten to hundreds trades in a single day because they believed that small moves are easier to trace than larger moves.

 

Momentum

This strategy usually involves trading on news releases or finding strong trending moves supported by high volume. One type of momentum trader will buy on news releases and ride a trend until it exhibits signs of reversal.

 

I don't really see what your point is and how this is relevant to the topic of this thread? From looking at your other posts, this almost looks like you are copying and posting random topics from some trading definitions related websites?

 

Also, what is your defintion of an investor? I have a hard time imagining an investor using a scalping strategy.