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Well, I think you meant having an expectation before slippage significantly deviating from zero. You can have really tight profit targets and wide stop losses to pump your win rate trivially (just as one example).

Yep, someone should be able to compete with C2's pricing to push it down eventually.

Just IMHO: Sharpe 0.5 may be exceeded by monkies selecting stocks (it was the repeatable case in a Swedish zoo). Sharpe 1 is tradable IMO since it's less likely to be luck over a long sample period. Sharpe 2 is a decent. Sharpe 3+ is where getting rich is at. Tongue-in-cheek regarding the...

Properly backtest, realize that 99.99% of the stuff you can think of will not work in practice (thus you don't need to lose any money trying it). Trading your algo live on e.g. IB's practice account is a good idea - sorting out the differences in your backtest and forward simulated performance...

Have a look at quantconnect.com

I like reasoning about the fundamental backdrop. Yes there's the trade war but we've yet to see what the final level of severity will be, and when a lot of news have been bad there's a better chance of relatively good surprises. Market going down without much fundamentally changing (that...

+1 exactly, it's in doing what feels wrong where the profit is (grossly generalizing, but reasonable for a one liner).

Late to the party, but to summarize: As OP does note, the reason for losing are often unrelated to incorrect direction or delta expectation. In fact, you might be entering the correct direction 50% of the time randomly (assuming e.g. no long bias) with fixed same size PT/SL, but you will be...

Demand from China dropping due to bear market over there? Just speculating on where to investigate further.

Just backtest it. No need to speculate when it's pretty straightforward to find the answer to this hypothesis.

Shorting stock indices during the right circumstances is comparatively easy, it's just that the right circumstances for shorting them are very infrequent and it takes patience to wait for them (during which you're better off being long, unless in a pronounced crisis market like 2008).

It's fine for my ordinary purposes but it will suck to not have 50x when one of those rare huge gain easy to read events happen.

Niederhoffer adds that current volatility in Bitcoin is approximately 4-5% per day, which is about where the stock market was ten years ago Uh, because it was the financial crisis of 2008? Not sure if that's a good comparison for his purposes.

Visual Basic 5?

I was interested in stocks from age 8, however I had little clue of the reasons of price movement beyond understanding it as randomness, so I had to settle with imaginary gambling mind games... Of course, in those days, home computer trading as such didn't exist either - practical access to a...

If you find something that has value there's nothing stopping you from re-implementing in C++ or even FPGA or ASIC. Of course, the runtime of a fancy ML algo might still be too slow for short timeframes.

Yeah saw that. I guess the bottom line is, don't mix your emotions with your money.

Do yourself a favor and write a quick implementation of this strategy at platform like e.g. quantconnect.com I tested a variant of it and I had the impression the strategy is has lost its edge. Then again, perhaps I don't monitor enough stocks as I (for performance reasons) had to limit to...

Ah sorry, I'm pretty tired. Shouldn't be posting mid night apparently. :)

I did C2 a while before moving on to my own strategies (WIP). The problem is a lot of strategies on C2 (I would say, a majority of the popular ones) have a high chance of blowing up. Systems can suddenly fail because they were discretionary or the author decided to change something in addition...