Search results

Cutting losses is the most commonly cited method to manage risk for traders. However, I have heard of some traders who don't use cut-loss method to manage risk. For example, private equity can't cut their losses because they own the whole company. Surprisingly, even established trend-followers...

Thank you for the graph. From the graph, a good guideline is to have at least 600 trials in the backtest to avoid over-fitting. Unfortunately, I am not sure what exactly is meant by each trial. Does 1 trial refer to 1 trade? So, if time frame is daily, around 10 years of data history is...

How long should backtest historical period be is a tricky question. If backtest period is too long, say, 30 years, the strategy may not be suitable for today's market because the market 30 years ago can be very different from today's market. For instance, U.S market used to trade in 1/8...

To add on, any stock which has >100% short interest makes it an easy target for short squeeze, even if the business fundamentals is terrible enough to make it a good short candidate. Proper risk management means one should lighten up on risk exposure to this kind of excessively shorted stock.

Here's my own take. GME's short interest was more than 100% at one point. I don't know how much of that was from Melvin. However, I expect any risk manager seeing a stock with a senseless >100% short interest would have insist on reducing the short exposure to this single short. Maintaining a...

TA is not bullshit but you make a good point that with Melvin's AUM to manage, he has a far more challenging problem that retail elitetraders here. GME's short interest was more than 100% at one point. I don't know how much of that was from Melvin. However, I expect any risk manager seeing a...

Anyone knows what is Melvin Capital's compounded annual returns since inception after the abrupt >50% loss?

Melvin Capital was one of the top hedge funds since inception in 2014. They are one of the few hedge funds who handily beat benchmark stock market indices. I expect them to have top-notch risk management to produce this kind of performance. Yet, they lost >50% in a single month alone. Can the...

Bloomberg ranked the best places to be in during Covid pandemic. No 1 -> New Zealand No 2 -> Singapore https://www.bloomberg.com/graphics/covid-resilience-ranking/

I believe the USD600 per week should have difficult criteria to meet. Otherwise, I see no other way but U.S to go down if this becomes a way of life.

The exchange is open for all to see. Who's the civil and uncivil one, we can make our own judgments. Thanks for your contribution.

Please don't let uncivil exchange spoil this thread. Thank you.

True. If someone is uncivil to you, it's hard to be civil back. Sometimes, being too civil to a bully will encourage even more bullying.

I started this thread to ask the expert elitetraders for some possible reasons for quant funds underperforming the past 5 years. Unfortunately, a significant number of the posts here are defending quant funds and little about the possible reasons. I hope to see more discussion about the latter...

I didn't watch the video. As a general comment, talking about absolute amounts without percentages is meaningless. If 150k is only 0.5% of a trader's portfolio, it's a non-event.

What I don't understand is when quants, particularly those in the equities space, say they perform well when markets are volatile. This statement applies more for day traders and market makers like Virtu. For stock strategies which hold for longer duration, I expect performance to be better when...

Another example is Prada on Hong Kong exchange. I guess derivatives like CFDs which avoid stamp fee/FTT will become more popular if FTT is implemented.

French Total oil company (symbol TOT) trading on NYSE as ADR. Right on U.S doorstep.

French stocks and italian stocks have FTT. Currently, there are some French stocks and Italian stocks which are listed in overseas exchanges. When foreigners trade in these stocks in the overseas exchanges, they still have to pay FTT. Therefore, using them as precedents, it makes no difference...

I don't quite understand this part in your post in bold. U.S stocks are only traded on U.S exchanges. How can U.S investors/traders shift their trading elsewhere if their investment targets are U.S stocks? I don't see how a FTT on U.S stocks will result in these people shifting their trading...