Grinding it out, day after day

[boba15]

Lescor, do you scale in and out only because of liquidity considerations or there are other advantages to it as well?

 

[lescor]

Quote from Agassi:

To Lescor,

Just curious about your academic back ground. You had mentioned that you had been a fire fighter...but i am just wondering what you studied in college.. How did you know all these statistics? How complicated are your systems?

I didn't go to college. I just know real basic stuff from reading, maybe one step beyond common sense. My systems aren't complicated, I believe in simple.

 

[lescor]

Quote from boba15:

Lescor, do you scale in and out only because of liquidity considerations or there are other advantages to it as well?

Partly for liquidity reasons. I trade larger size knowing I'm risking different amounts for different parts of the position, if that makes sense. I think it helps with consistency too. Maybe it's not always the most efficient, but it just feels more comfortable to me.

 

[jones247]

To Lescor or anyone that runs various scans/filters,

When your scanner or filter identfies several stocks that meet your trade criteria, do you try to trade a basket of stocks simultaneously or do you pick 1 - 3 stocks an focus on those few. In other words, do you use the "shot gun" approach or the "rifle" aproach to your trades?? I tried the shot gun approach, but I quickly learned that it's a BIG challenge, unless I automate.

thanks,

Walt

 

[trend2009]

I trade all, trying to diverse among as many stocks as possible.

Quote from jones247:

To Lescor or anyone that runs various scans/filters,

When your scanner or filter identfies several stocks that meet your trade criteria, do you try to trade a basket of stocks simultaneously or do you pick 1 - 3 stocks an focus on those few. In other words, do you use the "shot gun" approach or the "rifle" aproach to your trades?? I tried the shot gun approach, but I quickly learned that it's a BIG challenge, unless I automate.

thanks,

Walt

 

[boba15]

Quote from jones247:

To Lescor or anyone that runs various scans/filters,

When your scanner or filter identfies several stocks that meet your trade criteria, do you try to trade a basket of stocks simultaneously or do you pick 1 - 3 stocks an focus on those few.

That's why I asked Lescor earlier whether he trades s&p500 correlated stocks or not. These stocks move in tandem, and I see no much difference between trading one such stock, their basket or es/spy outright (and Lescor isn't a pairs trader either as was mentioned in the past). In other words, if es starts hitting days high a lot of stocks will do the same too. What's the point then, if returning to mean mainly depends on es?

If I'm missing something I would appreciate any insight.

 

[arc]

Quote from boba15:

That's why I asked Lescor earlier whether he trades s&p500 correlated stocks or not. These stocks move in tandem, and I see no much difference between trading one such stock, their basket or es/spy outright (and Lescor isn't a pairs trader either as was mentioned in the past). In other words, if es starts hitting days high a lot of stocks will do the same too. What's the point then, if returning to mean mainly depends on es?

If I'm missing something I would appreciate any insight.

From what I see, Lescor is trading the very different RTM from what you are talking about. It looks mainly like fading the short term panic (long or short) and reversing the sudden price movements e.g. due to large market orders in thin stocks.

 

[jones247]

Isn't that similar to what Paul Rotter (aka "the flipper") used to do? He would place very large orders in illiquid markets to move the price near his order, then reverse his order and get filled as the price reverts to its mean...

I believe that was the essense of his strategy. Nonetheless, I understand that at his peak he was making about $30M per year...

 

[boba15]

Quote from arc:

From what I see, Lescor is trading the very different RTM from what you are talking about. It looks mainly like fading the short term panic (long or short) and reversing the sudden price movements e.g. due to large market orders in thin stocks.

Lescor, is this the only type of RTM you're trading or you're doing it in some other forms too?

 

[arc]

Quote from jones247:

Isn't that similar to what Paul Rotter (aka "the flipper") used to do? He would place very large orders in illiquid markets to move the price near his order, then reverse his order and get filled as the price reverts to its mean...

I believe that was the essense of his strategy. Nonetheless, I understand that at his peak he was making about $30M per year...

I don't think it's about price manipulation I believe it is rather exploring the very short term inefficiencies.