Bullshit. His firm incorporates some type of trend or chart analysis in their buy and sell decisions.
Jim Simons Trashes Trend Following
- Thread starter marketsurfer
- Start date
This attitude is often used in religion. Allah says...,God says....
It is never good to worship any human being because then you lose all objectivity. That's how we got IS and fundamentalist Islam, and the same problems centuries ago with the crusaders in Europe and the Middle East.
The fact that Jim Simons is a master in some area of trading or investing does not mean he is a master in everything. He is a superstar in what he does, but not at all in what he does not do. Investing or trading involves a very wide spectrum of things.
What you pretend is that a word famous hart surgeon, is also one of the best in brain surgery, kidneys, stomach... That's completely ridiculous.
Your attitude of "how dare you to question what Jim Simons says?" does not impress me at all. I will always have an own opinion and not take over wisdom from others just because they are famous.
PS: brilliance is no guarantee at all for success. If not thousands of people would be like Jim Simons. And this is clearly not the case, showing that brilliance is not enough.
How much money made Linda?
How much money made you? From trading, not from selling books or articles. None.
This is the most idiotic post on ET ever. I think the poster may want to rephrase.
Modern trend following funds (aka CTA funds) diversify risk across multiple sub systems and markets. Filtration methods are used to select the lowest risk combination of trades from a large pool of potential trades.
This helps to minimise the effect of chop. Of course, this can never be eliminated and drawdowns - sometimes very long ones - are part of the game.
The debate about whether trends are more likely to continue or reverse is meaningless. Markets go through periods of both expanding and contracting directional volatility; a good trend following system will manage risk well enough to minimise drawdowns during low volatility periods.
This helps to minimise the effect of chop. Of course, this can never be eliminated and drawdowns - sometimes very long ones - are part of the game.
The debate about whether trends are more likely to continue or reverse is meaningless. Markets go through periods of both expanding and contracting directional volatility; a good trend following system will manage risk well enough to minimise drawdowns during low volatility periods.
That's the most difficult part of "trend following", limit the losses when wrong.
we had a big day in 1987, now every day is a big day, some call it volatility, I call it a trend. It's a trend if you are maxed out on the right side.
Diversification has saved my ass many times. As a matter of fact I don't think there is a single vehicle that I trade where I am a net winner, but put them all together and it's kind of like Whack a Mole. Something is always poking their head up out of the hole.
they don't leave you much choice anymore. If you can't make it in HFT, then you better go way to the other side. Most are in the middle. And you know what they say about most.
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no kidding, I have a million strategies, but they all have one thing in common, keep your losses short and let your profits ride. It's amazing how easy it is to make money trading if you just do that. But it doesn't seem easy when you are going through it. If you get just one little thing wrong, like improperly defining what a "loss" is or what a "profit" is or miscounting the cost of war and you are constantly sitting on the edge of disaster. And since I very rarely get it exactly right, that's about where I sit all the time.
otherwise, If markets no longer trend, why would anybody ever use a stop?
Not to question one of the greats, but trend following does have its place in modern trading. It has changed with HFT and the more complex types of operations that funds and banks are doing, but many (almost all in my view) of the governing principles are still in play. It's just the speed with which they unfold and have an effect on markets and individual stocks. I think timing has become more hard, not trend following.
what a beautiful interview. I just watched the whole thing, all 23 minutes of it. And I pay verizon $50/mo for 5 gigs of wifi and ten bucks for every gig after that, so it costs me a fortune to watch these utube videos, but it was well worth it. Not so much what he said about trends, but just to know there is still somebody out there who has been successful and is still curious and has nothing to sell. And most importantly to me, he peaks your interest in math.
ah, DaVinci thought all the worlds problems could be solved by math...I don't know, but it can't hurt and I know I would be a lot better off if I understood more of it.