"Jim Simons is Correct About Trend-Following"

goodgoing said:
Good article from the Quantocracy mashup. I agree that trend-followers are gamblers but when they win the profits worth the pain.
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HOGWASH!!

Simons is an HFT trader.. most of his success LIKELY to be from being a faster front-runner than his competitors.

There are about half-dozen ways to "skin the market's cat".. Simons' HFT is but one.

Simons wants to claim "trend following is dead".

Think about that logically. If there is no such thing as "trend (behavior)" then every market move is RANDOM.... and that is NOT the case. Market trends may/may not be as pronounced as before and therefore more difficult to capture... but they are still there.
 
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I think he is like a medium frequency trader. Most of his money were made before HFT via data-mining. Unless you think he lies, do you?
 
goodgoing said:
I think he is like a medium frequency trader. Most of his money were made before HFT via data-mining. Unless you think he lies, do you?
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I doubt he lies.. I just think he "got there first"... and if so, that's OK. (ANYONE who "gets there first" in any venue, is entitle to make a lot of $$$. That's the American way.)
 
http://www.insidermonkey.com/hedge-fund/renaissance+technologies/5/

Bold and underling mine.

Jim Simons’ Medallion Fund is the best hedge fund that Insider Monkey has come across. The fund’s returns are so spectacular that Jim Simons became one of the richest people on the planet. Medallion Fund employs high frequency trading and exploits inefficiencies in the stock market.
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I have read other places that Medallion doesn't do HFT. So not sure. However, I do remember Simmons on CNBC defending HFT.
 
Regarding trend following or trend trading. I personally know 2 traders that have made 10s of millions of dollars. Both of those traders describe their system as trend trading. So Simmons or anyone else can say trend trading is dead or trends don't exist. Those two traders don't give a shit.

If someone makes money trading a system they call trend trading, does it matter if other people think trends don't exist?

P.S. You can believe the above statement or not. I don't give a shit.
 
WeToddDid2 said:
Simmons or anyone else can say trend trading is dead or trends don't exist.
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HOGWASH!

The market "trend" is partially a reflection of "players' cumulative psychology". As a trader yourself, you want your risk to be "in tune" with that. Fade that psychology at your own peril.
 
Scataphagos said:
HOGWASH!

The market "trend" is partially a reflection of "players' cumulative psychology". As a trader yourself, you want your risk to be "in tune" with that. Fade that psychology at your own peril.
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I don't think that you read my post in context. I agree with you.
 
'Some trading forum members declared that Jim Simons does not understand trend-following. That was really curious to me. It’s like saying that Niels Bohr did not understand quantum mechanics for which he received the Nobel Prize. If there was a Nobel Prize for trading, Jim Simons would have probably received one.'

HA HA:)) KUTFKWKUT :)
 
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