Dest's "Trade Against a Pro" Trading Challenge

I would not call that a structural edge in any way...Any body can do it,and it's far from riskless.Watch the Big Short..

People like buying dollarized debt im emerging markets for the increased yield and not hedging out convertability and default risk..
That's not a structural edge...

Better technology,models,customer flow,information flow are structural edges IMHO..Trading the yield curve,Trading term structure,chasing yield in foreign markets without hedging the risks is not a structural edge..


ironchef said:
Here is an example:

For the longest time fixed rate mortgages were expensive because home owners loved the certainty of fixed monthly payments and didn't mind paying a higher interest rate for the peace of mind. So, there was a positive structural bias built into mortgage back securities. If one could borrow short term and bought MBS he made money year in year out without risks, it was a structural edge.

What was even more surprising, as interest rates dropped, many home owners didn't refinance making the structural edge even better.
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re the platform: they could have just used trading view's interface to buy/sell and spend more time on the execution side of things. But no, some product manager had to make their legacy. WTF is with that trade log. Yes, I completely get the value of a trade log. But I automate mine.
 
I hit the opening rotation this morning in both accounts and am up a bit more (+$1,800). $448K YTD. +$3K on the "contest."

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taowave said:
I would not call that a structural edge in any way...Any body can do it,and it's far from riskless.Watch the Big Short..

People like buying dollarized debt im emerging markets for the increased yield and not hedging out convertability and default risk..
That's not a structural edge...

Better technology,models,customer flow,information flow are structural edges IMHO..Trading the yield curve,Trading term structure,chasing yield in foreign markets without hedging the risks is not a structural edge..
More...
OK I stand corrected. Example was not my own but from Bill Gross.
 
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Hey,I only said I wouldnt call it a structural edge,and thats just my opinion.Others may feel that is a structural edge and feel I am way off base..And I would take Bills opinion over mine,7 days a week and twice on Sunday:)



ironchef said:
OK I stand corrected. Example was not my own but from Bill Gross.
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taowave said:
Hey,I only said I wouldnt call it a structural edge,and thats just my opinion.Others may feel that is a structural edge and feel I am way off base..And I would take Bills opinion over mine,7 days a week and twice on Sunday:)
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It's OK, I valued your opinion. :thumbsup:

In fact I am taking up your offer on butterfly in a different thread. But not ready to post an example for you to critique. I am a very slow learner.

Regards,
 
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