How much capital required to generate $200/day pair trading?
- Thread starter lolatency
- Start date
Word. But no, that was a joke. I think I can handle at least a couple billion through futures, options on futures, options on the ETF, buying shares of qid and qld on the open, millions in liquidity. Don't know, I'll have to get their first, then I'll figure out how to make it work. 50 mill I guess to a futures account.
I could easily say the same for you as it depends on a number of factors.
At 100:1 Fx requires 100 pips to make $200 from $200. If you're a hot trader that is easily possible. If you can't trade then all the money in the world won't help.
Tweaking parameters to autotrade could be considered more like a gamblers approach than a traders. Is number crunching really trading?
Algo trading was the sure fire way for hedge funds to succeed until the market changed and they discovered the guys didn't know how to trade - they were gambling.
I'm not knocking your approach. If it works then more power to you and if it lasts then great, but there's many way to approach getting a profit and the accuracy of an approach determines the RR while the completeness of the method determines its longevity.
I had to think about this. Is it really a decent average joe system? I think you're right, it is only something an average joe could do, given they have a similar pedigree.
I'll admit there are more technically challenging systems to implement. I've been trying to get with a kansas city market making company for awhile now, and I thought they would value the system more highly, but it seems they're a tad beyond this level of trading.
I think there are higher risk adjusted systems, but these are, as you say, not an average joe system and earn less on an absolute basis. It's one managed by people just making a cent or two cents on the spread. I would love to be a part of that for its dependability, but what I would doubt is that it's more profitable than my own system. I think they earn a decent amount, yes, but I don't believe those profits are excessive using risk adjusted measures like sharpe and others, because they still have to hold some inventory at some point during the day. This exposes them ultimately to the underlying, and while starting the day with 0 shares and ending with no shares is an option, it might not be that great of an advantage.
"Outperform." With all the grief Tim Sykes takes around here, even he doesn't base his % on "outperform" and in fact makes fun of those who do.
It's hard for me to find "substantial worth" in a system that can't "outperform" cash in a mattress.
To answer the OP, I think dhpar already had one of the best answers back on page 3. If you can't average a 50% return on a smaller account, it might be time to try something else. Unless the risk is very small and/or doesn't require full-time attention, I guess.
I hate sounding like a jerk but im getting tired of seeing you spam your C2 page here.....
Shouldn't a successful pairs system always make money regardless of which way the market goes? That's one of the benefits of trading pairs, no?
And shouldn't "scalping" systems make money during downturns too? Outperform the market, lmao. This isn't a buy and hold mutual fund.
I've seen you try to spam your system on here for ages. It's getting old. I wouldn't trade your system even if you paid me. 5 dollar a month for a subscription. You sound like a beggar. If you want some respect, show us your real money trading results with this "system" of yours. Do you even have money in the market? Is this a high school project?
"Hmm, being the best pair trader in the world:" - this is a joke right?
Shouldn't a successful pairs system always make money regardless of which way the market goes? That's one of the benefits of trading pairs, no?
And shouldn't "scalping" systems make money during downturns too? Outperform the market, lmao. This isn't a buy and hold mutual fund.
I've seen you try to spam your system on here for ages. It's getting old. I wouldn't trade your system even if you paid me. 5 dollar a month for a subscription. You sound like a beggar. If you want some respect, show us your real money trading results with this "system" of yours. Do you even have money in the market? Is this a high school project?
"Hmm, being the best pair trader in the world:" - this is a joke right?