How is this possible

Quote from ChrisMMM:

After a TON of work, and the help of someone on here, I really have been able to successful produce 100% mechical trading systems, and the results have been quite good.

However what I always wonder is how is it possible? How is it that the mutual funds and other large institutaions with TONS of resources can't beat the market? Why can't they hire the smartest people on the planet? I, whom I don't consider the brightest crayon in the box is able to beat the market, granted it took a TON of time to understand how to build trading systems that beat the market, but Just how is it that the big guys who all those resources can't find and hire the brightest minds in the world to beat the markets? It doesn't make sense!
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Your system trades $10,000.00

They trade $10,000,000,000.00
 
Quote from ChrisMMM:

i should have written this better... if a one person team who really ain't that bright is able to havo an edge, then why isn't every single mutual fund able to beat the market?
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lets see how 'sharp' is your 'edge' when you go live:D
 
Job loyalty is not a two way street nowadays. I maintain that if somebody is really bright, and they are working for somebody else, and they discover the holy grail, that they will not divulge it to the employer. They will be opening an IB account surreptitiously and trading from their home computer and retiring in place on the job..... at least that is what I would do.
 
Quote from maxpi:

Job loyalty is not a two way street nowadays. I maintain that if somebody is really bright, and they are working for somebody else, and they discover the holy grail, that they will not divulge it to the employer. They will be opening an IB account surreptitiously and trading from their home computer and retiring in place on the job..... at least that is what I would do.
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So are you implying smart fund managers leave to make their own personal fortunes and the managers left behind are the under-performers? It seems to me that could very well be true. From my own experience I can make more on a percentage basis trading a smaller amount. If I go too low then commissions take a toll but there is definitely a "sweet spot" equity amount that makes the most percentage-wise (which I'm usually over). So if a professional fund manager sees he can get a much better return trading a smaller amount, and his potential profits are more than his salary + perks then why not leave? That is, providing he has enough equity personally to pull it off!
 
Quote from ChrisMMM:

After a TON of work, and the help of someone on here, I really have been able to successful produce 100% mechical trading systems, and the results have been quite good.

However what I always wonder is how is it possible? How is it that the mutual funds and other large institutaions with TONS of resources can't beat the market? Why can't they hire the smartest people on the planet? I, whom I don't consider the brightest crayon in the box is able to beat the market, granted it took a TON of time to understand how to build trading systems that beat the market, but Just how is it that the big guys who all those resources can't find and hire the brightest minds in the world to beat the markets? It doesn't make sense!
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You should put the results you attained to the test. there is an good possibility that the results you attained are simply due to luck. the test will show you if your strategy is robust, or if it has simply gotten lucky over the tested period. There have been many papers published on testing strategies for randomness.
 
Quote from ChrisMMM:

i started w/ stocks due to the fact that it's a better market to learn on because it's not leveraged. also, i use no stops i find they do not add anything to the underlying strategy. Also, I believe that money management, although a very important part in system design, has no effect on the outcome of the stategy.

i don't know why people think that building mechanical trading systems are much more difficult than trading manually. I mean after all, I have no idea how one would figure out beating the market without a thorough backtest. Upon completion of this you have your mechanical system.
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Reading this reply........an experienced trader will know that this guy is not to be taken seriously. Money management is not an important part of system design.......lol and then building a mechanical trading system is easier than trading manually......lol. I remember when i built my first mechanical system, the numbers said that in 3yrs i would clear 500million, i learnt my lesson over the next three months that trading overall is not that easy. After trading a minimum of live trading for six months, then start making inferences about your system. This also depends on your trade frequency......a high frequency would give you a good result after six months of live trading. See you in six moonths.......
 
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