Quote from OddTrader:
I like to learn new ideas.
Do you know of any trading system/ method that suits all stocks, except ETFs/QQQ/Etc.?
Do you understand why?
Are ETFs also stocks?
http://elitetrader.com/vb/showthread.php?s=&postid=1978661#post1978661
Here is a new idea for you.
F = I ( 1 + i)^n
where F = Final Capital
I = Initial Capital
i = profit per turn
n = number of turns per year.
The following set of citations are where you are changing the relative importance of things for your own reasons. These changes in relative importance are your business and you can do what you want. What you do certainly flies in the face of "liking to learn new ideas" and that contradiction for you to continue to support is your business.
Some traders are very successful; others are marginal and yet others fail.
A method designed to suit all stocks is a low quality method. All stocks are not alike. With this recognition (try it on for mental size for a moment) then other considerations can be put on the table.
n is the most powerful single variable contributor to the formula I typed. What small group of stocks or instruments would best be used to keep this variable at a maximum.
For three systems I use the annual value of n is approximately 100, 7500, and 12.
To get these to work my universes respectively are 150, 1 and 250 on average. the 150 could drop to 75 and the 1 could be 25 and the 250 could be adjusted to 1000 or so without degriedation of the values of i or n.
For the first method, using and n of 100 and an i of 0.1, the maximum value of I is the product of the instrument price times 100,000.
EFT's and QQQQ, as you have been told do not fit the universe criteria you have been given. This is old information to you. Nothing new to you.
You do not understand why; that probably will not change for you.
If you do get to understand that all stocks are not alike, you may be able to understand that sorting stocks is done.
Here are some examples: ETF's and QQQQ baskets. Why did they make these baskets? The reasons are well known and the reasons are based upon the beliefs of those who follow the CW algorthms.
I decided to eliminate the CW handicaps found in the CW algorithms with the model (pool extraction) I use for the methods I practise.
You believe in using these handicaps. I do not simply because they may be eliminated by making use of alternatives. All of this is OT regarding the limitations of this thread.
