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+1

To clarify, I mean correlation between *strategies*. Obviously there are related structures / instruments that offset neatly with known dynamics.

I haven't seen anything where that correlation is negative & also stable.

The way you have put your problem is unusual. The mechanical strategies I am aware of & have worked on don't have the on/off profitability you're implying. They're more driven by volatility, and operational blunders, as factors determining their day to day small sample efficacy. Your...

The probability of inventing two directional mechanical strategies that are profitable is low, and having them also negatively correlated is lower still. If you're able to come up with this stuff, then you should be able to answer your own question. I'd guess that neither strategy is...

So you're trading the spread between the strategies, which degenerates to a correlation trade, with all the usual swings and round abouts of a pairs trade (allbeit a more dubious pairs trade than an ordinary pairs trade). It might well be easier to sell one of the strategies to newbies for...

The hordes of programmers are the problem, not the solution. Every time you post, you sound more like a back office IT guy than a trader. There's nothing wrong with being that, but, perhaps you just haven't seen strategies in markets/products that are still wide enough to exploit from a...

Good luck with all this. I see you're looking for 80% accuracy. That's .. way too high in the real world, imho.

:eek: My AI forecast assumed different gender distribution. "one guy" – Nice work. Keep doing what you’re doing.

How about showing API orders in the book trader?

Sponsored access?

More. But not necessarily a lot more. Realistic order handling, especially around partial fills can get complex. For the lazy man, you can always run stuff through the IB test market, as a short term "forward test".

Baskets of 500+ instruments can be traded through IB systematically, by writing maybe 200 good lines of C#. I'd say that would take a couple of Saturday afternoons to code and test, if you're into that sort of thing. The order execution and management is not really that hard for anyone...

The infrastructure cost is becoming an issue, while the dumb money is wasting away. But I think you already know this.

I want to buy a long strangle on you, way way out of the money.

If I thought this was real, I'd be concerned. Remember fella, sometimes talking small adds credibility.

+1 boatloads. and they don't even have to be glossy.

Oh. I see. Perhaps this discussion will dovetail well into a relevant book or training course recommendation.

It doesn't matter whether you're "on the cautious side" and "only selling $X in premium" .. There is no default edge generated by writing options. It's a directional vol trade, whether you know it or not.