22 things you need to know about trading from Vic Niederhoffer

Quote from atticus:

Soros alluded to it in his book; that he was selling premium from very early in his career.
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Not only did he love to sell puts, he also loaded up on on ES futs after his stat models gave their buy signals for an upcoming rally after N consecutive down days. These work 49/50 times until you get swept away by a tsunami in the 50th trade. Buying dips and exiting with a profit target delivers the exact same risk profile and equity curve as being short premium.

Niederhoffer was not only a gambler, but a gambler with a huge ego. He publicly pissed on anyone subscribing to a different methodology than his own, arguing there was no 'statistical merit in momentum trading, technical analysis and value investing'. Traders that engaged in them were delusional sheep to him.
 
Quote from Butterball:

Not only did he love to sell puts, he also loaded up on on ES futs after his stat models gave their buy signals for an upcoming rally after N consecutive down days. These work 49/50 times until you get swept away by a tsunami in the 50th trade. Buying dips and exiting with a profit target delivers the exact same risk profile and equity curve as being short premium.

Niederhoffer was not only a gambler, but a gambler with a huge ego. He publicly pissed on anyone subscribing to a different methodology than his own, arguing there was no 'statistical merit in momentum trading, technical analysis and value investing'. Traders that engaged in them were delusional sheep to him.
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You need to realize that he has the calculations, testing and data to back up the claim of their being no edge to...... in other words the math proves it-- now you can argue that stats isnt' relevant or the testing is flawed but that's another story....

surf
 
Quote from Pekelo:

You still haven't told us if he became a successful trader or not.

If you are bringing up Vic's mentoring ability, you should worship him as a teacher not as a trader... Nothing wrong with that...

I worship Jack Hershey as a philosopher and great thinker, not as a great trader...
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I worship no person, i just like some better than others. :D

I really have no idea what happened with Soro's son--- would be interesting to find out!

surf
 
This sounds shockingly familiar. Who else do I know that is like this....:D

Quote from Butterball:


Niederhoffer was not only a gambler, but a gambler with a huge ego. He publicly pissed on anyone subscribing to a different methodology than his own, arguing there was no 'statistical merit in momentum trading, technical analysis and value investing'. Traders that engaged in them were delusional sheep to him.
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Quote from marketsurfer:

A drift is different than a trend. Try statistics 201. Thanks.
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Bullshit. Try Logic 101. Thanks.
Quote from cornix:

Sounds like distinction between slow trend and fast trend only. But still a trend. :)
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+1
:)
 
Quote from marketsurfer:

Huh? May I suggest this to you

http://en.wikipedia.org/wiki/Innumeracy_(book)

I am far from an advanced math guy, but at least I know enough to hire, work with and associate with others that have the skills I lack rather than dismissing it.

surf
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Save your suggestions, I've aced every math course I ever took, up to and including advanced calculus.

So I'll make this simple even for someone as admittedly challenged as you are.:

A trend is directional bias. A drift is directional bias. It's not rocket science.

You can actually figure out some of this trading stuff yourself, surf. Nit everything has to come like a proclamation from some "guru" imitating Moses descending from Mount Sinai with stone tablets.
 
Quote from marketsurfer:

I really have no idea what happened with Soro's son--- would be interesting to find out!
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"Robert Daniel Soros, Managing Partner and Co-Chairman at Soros Fund Management LLC, has been with the company since 1994. He is also a partner at Soros Private Equity Partners and is responsible for private equities and real estate investing for the Quantum group of funds."
 
Quote from marketsurfer:

The Dark Lord also wrote this:

" in The Alchemy of Finance that Niederhoffer was the only one of his managers who retired voluntarily from trading for him while still ahead. Soros held Victor in such high esteem that he sent his son to work for him to learn how to trade.[2]" wiki


The ONLY one of the Dark Lord's managers who retired while ahead. Do you understand how many managers Soros has had? and the magnitude of what this means? surf:D
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then VN made a comeback and went broke. you will twist anything and never produce hard numbers.
 
Anybody in search of a hero, here is the summary of Soros' fund's story for a Sunday reading:

http://www.fundinguniverse.com/company-histories/soros-fund-management-llc-history/

Relevant part to this discussion:

"When the currencies of Thailand, Malaysia, Indonesia, the Philippines, and South Korea came under assault from speculators in the summer of 1997, Malaysian Prime Minister Mahathir Mohamad accused Soros and other money managers of deliberately destabilizing Asian regimes. Soros replied that his company's funds had made only minor trades in Southeast Asian currencies over the last two months. Druckenmiller added that Quantum had sold the Thai and Malaysian currencies short, but in the early spring, before the crisis. Ironically, he--and other Soros fund managers--bought as much as $1.8 billion worth of the Indonesian rupiah. "The IMF program [to support the currency] was as comprehensive as any I've seen," he explained, "but [Indonesian President] Suharto just reneged on it. I was naive about the level of corruption there," he told Riva Atlas."

Best part:

"Quantum Fund posted a 17 percent return in 1997..."
 
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