Can a System be reverse engineered just from viewing daily trades/account statements?

CPTrader · Sep 27, 2003

Quote from mg_mg:

ANN - artifical neural network.

Thank you.

OddTrader · Sep 27, 2003

Quote from ShoeshineBoy:

Didn't mean to imply I'd develop a system strictly based on it's "hideability". Nobody's going to bother with me while I have a small account anyway. But as you get larger, it's naive to think you won't be on somebody's radar screen...

Obviously possible, particularly by electronic scanning!

OddTrader · Sep 27, 2003

Quote from ShoeshineBoy:

Yes, trade all four (or more) strategies in each account. If you have one system that makes 100% in a year and three that make 25%, you'll still do great and it will much tougher to reverse engineer.

It's a lot of work, but what is easy about trading?

To be effective, do you think this approach must be implemented since starting each account? :mad:

OddTrader · Sep 27, 2003

Quote from Aaron:

I agree. Reverse engineering a trading system would be attempted by running throug a catalog of indicators. Did the trader use MACD? Or moving average crossovers? Or...? If your strategy isn't on the list of strategies someone might compare your trades to, then you don't have to worry.

It is just like guessing passwords or solving those series puzzles (like "what comes next after O, T, T, F, F, ...?") These are also solved by trial and error and if you have a password, series puzzle, or trading strategy that isn't going to be tried, then it won't be guessed/solved/reverse engineered.

If a firm offering Separately Managed Accounts service (with trasparent transactions), do you think its strategy could be reverse engineered by a client?

OddTrader · Sep 27, 2003

Quote from ShoeshineBoy:

Yes, trade all four (or more) strategies in each account. If you have one system that makes 100% in a year and three that make 25%, you'll still do great and it will much tougher to reverse engineer. It's a lot of work, but what is easy about trading?

Quote from EliteThink:

As I'm sure you know, if you had the trade log and the TIME the trades were made, reverse engineering would be simple.

Would it be posible that each and all the strategies could be reverse engineered?

(I would think so! :mad:

)

OddTrader · Sep 27, 2003

Quote from mg_mg:

Almost none of systems can be reverse engineering. If anyone really wants to do it, use ANN to learn the systems - an approach from many others.

So, anyone could use ANN (or else) plus hindsight based data to develop profitable strategies! ?

Good news, very good news indeeeeeed.

ShoeshineBoy · Sep 28, 2003

Quote from OddTrader:

To be effective, do you think this approach must be implemented since starting each account?

If I'm as successful as I think I'm going to be

, I will switch to another broker or brokers when my account get decently sized.

ShoeshineBoy · Sep 28, 2003

Quote from OddTrader:

Would it be posible that each and all the strategies could be reverse engineered? (I would think so! )

That depends. If the systems look completely different, they can be analyzed separately.

hypostomus · Sep 28, 2003

...what in generalities will lead you to the success you expect? Futures? Intraday? Mechanical trading? Some unique proprietary tool? Not asking for details, just broad brush.

OddTrader · Sep 28, 2003

Quote from ShoeshineBoy:

Thanks SB. I need time to think above them.