Automated Trading Is Gambling

sle said:
Not sure what you mean, but yes, longer hold strategies. Usually in equities or credit (i.e. bonds or preferred stock).
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I just mean momentum strategies across a large group of equities. I had to look up what cross sectional meant and I found a description on AHL Man's site. They separated momentum strategies into "cross sectional" and time series momentum (basically trend following)>
 
Gambit said:
They separated momentum strategies into "cross sectional" and time series momentum (basically trend following)>
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Ah! Cross-sectional more or less means that you achieve statistical significance by increasing the number of assets instead of increasing the trading frequency. As an example, when the guy is dating 5 girls at the same time, it's a cross-sectional strategy.
 
When one trades mechanically using mathematics over a period of decades, and keeps data over the same period,
and statistically outputs the same positive results over the said period of time, its not gambling!
It is called "The Exploitation of Statistical Accuracy."
 
jeffalvinson said:
When one trades mechanically using mathematics over a period of decades, and keeps data over the same period,
and statistically outputs the same positive results over the said period of time, its not gambling!
It is called "The Exploitation of Statistical Accuracy."
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Yeah, it`s like using your signals for the mechanical system and then you just turn them upside down for the automation.
 
Any mid/short term trading is a sort of game. You bet and either you win or lose. Algo is just a tool to optimize this process; it helps to estimate your bets and risks, which is not possible with a manual trading.
 
Apropos, the WMCN is more precise.

WMCN.png
 
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