Automated Trading Is Gambling

lovethetrade said:
Not the same as Google's, it's too general and doesn't take into consideration objectivity/subjectivity, expected outcome, odds, probability, certainty/uncertainty, long run, short run.

I think my previous posts indicate how I've defined it.
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%%
Good points, Love TTrade, many internet definitions are made up nonsense. I asked an old REALTOR friend about a buying a specific lakefront house, for resale/profit ?? He said ''that would gambling [meaning stupid risk]'' I thought to myself, that is not really gambling , so i said ''why??'' REALTOR said that lake house has been moved . So it was not really gambling, but it would have been a stupid risk. Strangely ,several years later, a flood broke the dam on that lake, dry as bone... ..:caution::cool:
 
777 said:
Many, many billions have been made by Renaissance Technologies via full automation.

I have a hunch most ET posters are not on their level, though.
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Its not difficult to find a simple strategy that is profitable provided that trading costs (commission, spread and slippage) are small enough. In that respect retail traders are at a major disadvantage compared with pros.
 
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Mysteron said:
Its not difficult to find a simple strategy that is profitable provided that trading costs (commission, spread and slippage) are small enough. In that respect retail traders are at a major disadvantage compared with pros.
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Actually, exactly the opposite. Your comissions might be higher, but your liquidity requirements are lower by orders of magnitude. I can think of numerous cross-sectional strategies where as a retail trader it would be easy to achieve Sharpe of 1-1.5 after transaction costs that are simply impossible for an institutional trader.
 
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sle said:
Well, apparently, Wikipedia defines: Gambling is the wagering of money or something of value on an event with an uncertain outcome with the primary intent of winning money or material goods
To invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future
Sounds pretty similar to me :)
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%% But many local sherriffs + police know the difference; try card counting in a casino + they will help you OUT so to speak LOL.

I gambled for quarters[00.25] in a pool hall as a kid. OOps, sorry i just gave away a price level LOL. Some people use gambling meaning stupid risk.....:cool:
 
Stdray said:
Are you asking or saying? Because trading itself is gambling and auto trading is no different.
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It`s a statement.i`m taking all the responsibility for that statement.Automated trading is pure gambling, so the variables are just.I found that the dice game variables are the closest that may have some success in autotrading.You are free to prove me wrong,though.Its my humble opinion and what i`ve found over the years of playing with the automation.
 
sle said:
Actually, exactly the opposite. Your comissions might be higher, but your liquidity requirements are lower by orders of magnitude. I can think of numerous cross-sectional strategies where as a retail trader it would be easy to achieve Sharpe of 1-1.5 after transaction costs that are simply impossible for an institutional trader.
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Cross sectional momentum over a longer time period (1 yr), market neutral?
 
Gambit said:
Cross sectional momentum over a longer time period (1 yr), market neutral?
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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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