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Professional trading? Why you suck as an amateur

Professional trading: Why you suck as an amateur

Another solid articles on tips why you probably blow donkey balls at trading. Check it out below as here are the highlights once again:


1) Resources – These professionals had a wealth of analytic resources at their fingertips–and they used these resources. They had a keen eye for how their market should be priced and took advantage of occasions when it moved from that benchmark.


–> Software comes to mind that is why it is important to master this skill. I.e. develop your own for exact needs not realying on crappy limted software retail trading platforms that cannot scale, offer multiple broker connections, and so on. Roll your own. This ain’t an easy process and it will never be. Maybe you should learn to pull the finger out of your ass. Or maybe just maybe, it will never work for you ’cause you don’t take responsibility or your just play victim like some ex partner. Bohoo, let me give you a little hug.

3) Strategy – Every trader I talked with could enunciate his or her specific edge in the marketplace and, in some fashion, could quantify that. I could not find a pure gut trader in the bunch.

You know how many poor cavemen traders I run into that rely on 1 strategy. Yeh, no wonder you got blown out. Think of the markets as Mother Nature and the Darwinian process, it wipes out the masses in one foul swoop. Good bye you turds, have fun working at McDonalds flipping burgers. Wah wah, cry me a fcuking river. You should not be trading, go to the casino. In short, software for analysis is key here.Roll your own suckah frat boy but that is ok becuase you are either too lazy or too stupid to know how.

4) Adaptation – Each of the pros knew details of his or her P/L, but also detailed trading statistics such as Sharpe ratios. When the stats veered off course, they were quick to make adjustments.

–> This is quite obivous, Sharpe alone don’t mean crap. Self adapting systematic automated processes are key here! You need to know your threshold limits, constantly running portfolio and risk simulations for positioning weight allocation, etc. Of course, the kiddies will never get that cause they’re drooling on the next color of their Lamborghini that they will never get. They will be lucky to scounge enough from mommy’s allowance to take the bus to school.

5) Complexity – The professional traders employed complex trading strategies that relied on trading different instruments and timeframes, all to exploit a single idea. Many of these strategies involved hedges that managed risk, even as they aggressively pursued their ideas. The idea of buying/selling a single thing and exiting it never arose in my conversations with them.

–> You probably ran away like a little girl. Good, the pros essentially are exiting the trades that you enter into because, well you were stupid enough not to know not to see the opportunities months prior. . Ahh let’s see, I wonder why….your software sucks and your risk analytical skills are probably as good as a four year old pre-schooler.

In summary, all you are doing is chasing stocks like other sheeple because all you do is watch CNBC to call yourself a ‘pro trader’. Or you ready the stupid forums with people yelling at each other through some nasty flaming war.Remind you of Twitter or YouTube commenting trolls.  You ain’t one of these suckers are you? Or better yet, you buy of of those overprice garbage educational programs you think is the magic bullet like the Mother Goose who lays the golden egg. Get over it, it does not exist!

But hey in the end, it aint my money.

PS. If this really bothers you, is that it reminds you  because of your mental case alcholic daddy yelling at you that you are failure. Maybe’s he right?

You have options you know.

You could always learn how get yourself on the right path.



But hey in the end, it aint my money.

Oh yeh, here is that link from above: http://traderfeed.blogspot.ca/2006/04/how-professional-traders-differ-from.html

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

estimate Fill Ratio dependency on the Latency in orders execution for a HF strategy, what would you do ?

aIf you need to estimate Fill Ratio dependency on the Latency in orders execution for a HF strategy, what would you do ?

I run back-testing on e-mini S&P500 and the software takes 100% fill ratio (for my limit orders) by default which is unrealistic for a HFT. The fill ratio should depend on the speed of execution and the size of orders, but how it can be estimated before real-money tests ?

How do you simulate a fill?

For simulations based on trades:
* You get a complete fill on your limit order when your limit price is traded
* You get a complete fill at your limit price as soon as a better price is traded
* You get a partial fill at your limit price as soon as the a better price is traded with the fill size the traded size.

Or do you have market depth data you can use?

est with a 1 lot , only assume fills when the price is breached. If your system still works trade live.

et’s say, I have Omega TradeStation and I don’t have market depth data. So the only situation when I can be sure in a full fill of the limit order is one when the order was generated “relatively” (to be defined) long before the trade occured (so it was actually in a queue) + the next price after the trade was better than the price of the trade (which means the limit orders of that price were executed 100%). In all other cases the order – in reality – might be executed partially or not executed at all due to too big latency in the route … Is there a chance to find a kind of 3D empirical graph linking actual latency, order size and fill ratio? Yet, there is also a time of the session parameter

Great! This is exactly the way I usually do it. I run optimization of the limit order price and then take the number of trades (frequency) from the “more distant limit price” set of parameters while the profit per trade – from the “less distant limit price” set of parameters. Multiplication gives an adjusted TotalNetProfit. Still the problem remains if there is a need to increase the size (for instance, for a business plan) or to move into HFT area. When frequency is high the role of latency becomes too uncertain/important.

You might like this paper:

Order Book Simulator and Optimal Liquidation Strategies.
Su Chen, Chen Hu, Yijia Zhou

If you enjoy modeling, you could define a limit order flow model, simulate the orderflow and the orderbook, and tweak parameters untill the limit data you have and the simulated equivalent match.

If you go low latency then Tradestation is not the best tool.

ight you are. I used to work with it on slow strategies. It’s like old shoes – they do not work any more, but you still love them.

where did you get those rules? Any market practitioner would reason that you cannot blindly assume near-low-latent limit order execution. @Alexei, yes 100% (absolute) fill is unrealistic for HFT. The low-latency objective seeks to reduce slippage for flash traders. Flash traders are not seeking limit orders. Understand the assumptions in HFT. Separately, the fill-ratio is demand-supply, volatility dependent. Speed of the LIMIT ORDER’s execution would become increasingly significant in a increasingly active/volatile market, where the market is deviating from idle/low volume&volatility to active/high volume&volatility, esp. if you consider market makers moving the the price away from its center during low volume (less) and during high volume (more) periods. If I am mistaken/wrong, please provide citations / papers :: links.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!