Educational background
- Thread starter virgin
- Start date
I think a mathematics, statistics or computer science background would certainly help a lot when trying to develop a system - because of technical tools. A lot of educations include elements from the above - bio-engineering, physics etc.
However, to be successful, I think the main thing is having the right attitude, courage and guts to keep at it and learning from the day to day experience; that is what it really takes.
So, an ambitious baker with a serious devotion to hobby trading might be a very successful trader for what I know.
Analytical skill, however is surely a pre-requisite in any case I presume.
However, to be successful, I think the main thing is having the right attitude, courage and guts to keep at it and learning from the day to day experience; that is what it really takes.
So, an ambitious baker with a serious devotion to hobby trading might be a very successful trader for what I know.
Analytical skill, however is surely a pre-requisite in any case I presume.
Very well said.
As they say, "each to his own" and each will use his education and life experience to develop his style (macro, fundamental or technical) or "edge" to achieve success in his own terms.
Just don't fall in love with a model or indicator, now matter how elegant or pretty.
tc
I have ten years experience on the institutional side of the markets (mutual fund manager and structured products in London and USA). Through all that time I saw trades and strategies that could make oodles of cash, but since we oversaw "regulated" client money, we could never take advantage.
I now want to get into trading, but not simplistic scalping or trend trading. I'm looking for a prop shop that is advanced and will allow traders to access ALL markets in their efforts. I can fund my account if I get paid a salary, but am looking to trade firm capital and share profits while living off of my savings.
Does anyone know of any shops that fit these parameters? Mighty appreciated!
I now want to get into trading, but not simplistic scalping or trend trading. I'm looking for a prop shop that is advanced and will allow traders to access ALL markets in their efforts. I can fund my account if I get paid a salary, but am looking to trade firm capital and share profits while living off of my savings.
Does anyone know of any shops that fit these parameters? Mighty appreciated!
most firms will be able to give you access to multiple markets. the harder questions are what commissions they will offer you. especially since it sounds like you will be using complex strategies. Almost all brokerages will have trading platforms that handle options, futures, equities and bonds but will charge different prices depending on the program (+modules to handle the multiple markets & instruments). Some brokerages/prop/hedgefunds do not deal with Forex, if that is a part of your strategies then you may have to go to a more specialized dealer. Be wary of Forex only shops.
Negotiate all of your costs and question what your buying power will be for overnight holding and day trading. 4x buying power for holding overnight is common, but will that be enough for your sophisticated strategies?
Check out the payouts, they can vary anything from 50% (or lower for traders that do not put in any of their own $ in the account) to 100% (95% is common)
Finding prop shops aren't hard, getting a good deal is.
ps can you share your strategies? I trade very simply but am open to ideas.
Osman,
Thanks for the reply and pointers. I must admit that you make me feel like a bit of a moron... for you say that finding prop shops isn't hard.... I have found many, but all the ones I found were either devoted to equities or futures, never both. FX is not part of my strategies.... Could I bend you for some specific names that fit my criteria?
I try to create strategies that are -
1. directionless (arb)
2. low risk - very high reward
I utilize options heavily. And when I say that I do not mean that I simply just buy/sell them. They are GREAT sources of information if you understand how they are priced. One word of advice - stay away from books that talk about profits using options.... One good, easy-to-read book.... "The Volaility Course".... Pretty much everything but volatility is consistent across all options, so if you can spot badly/cheaply/expensively priced vol, you have something....
FIRST, understand the difference between implied and statistical vol.... if you see ivol that is priced far from the hvol mean, then you have something.... if you see ivol priced at historic lows, then you have something..... you do not need to trade options to benefit from what they are telling you.... Volatility can be traded and/or used as "market intelligence".....
try www.ivolatility.com good site.... www.optionetics.com is overly simplistic, but a god starting point....
hope that helps a little....
I meant to type -
"I try to create strategies that are -
1. directionless (arb)
OR
2. low risk - very high reward"
Like I said, "I try"... but my niece might try it and might be more successful...... While I know markets, I know that I know that trading is a different animal than anything I have done before..... but I'm dieing to give it a shot!
"I try to create strategies that are -
1. directionless (arb)
OR
2. low risk - very high reward"
Like I said, "I try"... but my niece might try it and might be more successful...... While I know markets, I know that I know that trading is a different animal than anything I have done before..... but I'm dieing to give it a shot!
Honestly find it strange that futures firms wouldn't have options and the same with equities firms not dealling with options. would be scared off by these operations at first glance.
Through TradingScience I'm connected with Northwestern trading
www.northwesterntrading.com
other members of ET can post the brokerages they use brokerage or you can go to ET's site on brokers
http://www.elitetrader.com/br/
In terms of strategy, i am familiar with delta and gamma option trading strategies but not so much on arbitrage. Arb with equities was always been over my head, i can't imagine how much more complex it is with options. Have had experience with delta trading at a daily or 4 adjustments a day (tops) pace. Anything above that i was getting angry at the commissions i was paying. Did this for about 2 months, turned out that i thought better as a speculator than a hedger with options.
You're absolutely right about implied and historical volitility, i have to find a way to incorporate that in my scans. As of right now i just leave it at checking out the betas on my stock list.
Favorite strategies using volitility are volitility breakout systems. Simple mechanisms working with bollinger bands.