Overtrading: Share Your lessons learned

easymon1 said:
how would completing the game involve your edge?

show us
Suppose your paycheck was based on the percent of entry triggers correctly taken?
trading-chairs-743-jpg.225154

Test yourself?
How well you can execute 100 trades in a row?

Whether the entry is timely matters 100% for this sim-game.
Ready?

What you need
1) A product and timeframe of your choice
2) Objective Entry Trigger Method, no nuances, no subjective hope, skills, or body english involved, just Mechanical Go/ No Go.
3) A sim trading front end that provides entry time paper trail.

A 30-second chart will run 100 triggers much faster than a 2min chart

Again, profitability is Not of interest here.
Accurate Execution of the instructions is all it takes.
If you can do 95% on this, you Pass Go and Collect $200 and a Get out of jail free card.

Here's one simple trigger setup that has clearcut go/nogo instructions.
https://www.elitetrader.com/et/thre...t-right-here-baby.335635/page-12#post-5066694

Error log
entered without trigger
entered late
entered early
did not enter, ...

stats
Triggers Taken Correctly/Total Triggers Available for Duration
More...

There is NO reason for me to complete a "game" (which I already stated makes no sense, unless you are trying to get free hard work from pros).

I already did, since September, 1998...

If I were to complete this so-called game, it would involve me revealing instruments, time-frames, types of frames, multi-dimensional charts, intercorrelated instruments across various asset classes, etc.

There is NO reason for me to do that. YOU spend a decade, and figure it out, which probably will NEVER happen. Please STOP looking for short-cuts, you MORON...

Perhaps then, you can drink well: https://www.elitetrader.com/et/thre...-trading-anything-but-a-gamble.345731/page-17
 
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geneticien said:
@ChipShotTrader What is your CAGR over the last 2-3 years?
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ALL POSITIVE!!!

Last March was my best month in almost a decade, but I realize that it was an anomaly, and that I will not likely see that scenario again, in my lifetime.

CONSISTENCY is key, which eventually leads to freedom to do whatever one wants, and that's the fun part...
 
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ChipShotTrader said:
ALL POSITIVE!!!

Last March was my best month in almost a decade, but I realize that it was an anomaly, and that I will not likely see that scenario again, in my lifetime.

CONSISTENCY is key, which eventually leads to freedom to do whatever one wants, and that's the fun part...
More...

If a trader with a reasonably large AUM beats SP&500 during several years then it is rather impressive.
 
geneticien said:
If a trader with a reasonably large AUM beats SP&500 during several years then it is rather impressive.
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What do you consider a reasonably large AUM?

It is a decent benchmark. Not many traders manage to exceed the S&P.
 
deaddog said:
What do you consider a reasonably large AUM?

It is a decent benchmark. Not many traders manage to exceed the S&P.
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For retail traders it would be something like that:
  • Small AUM: <100k (most retail traders belong to this group)
  • Medium-size AUM: >100k and <1000k (some beginners and for-a-few-years successful traders belong to this group)
  • Large AUM: >1000k (some rich kids and long-term successful traders belong to this group)
These numbers are very approximate. I can imagine one can find some very niche low-volume opportunity and make 3 digits CAGR. However, the larger the AUM, the more you compete with regular actors and thus it becomes increasingly more difficult to beat S&P (e.g., that same traders will scale-down from 3 digits CAGR to 2 digits CAGR).
 
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geneticien said:
For retail traders it would be something like that:
  • Small AUM: <100k
  • Medium-size AUM: >100k and <1000k
  • Large AUM: >1000k
These numbers are very approximate. I can imagine one can find some very niche low-volume opportunity and make 3 digits CAGR. However, the larger the AUM, the more you compete with regular actors and thus it becomes increasingly more difficult to beat S&P (e.g., that same traders will scale-down from 3 digits CAGR to 2 digits CAGR).
More...
I agree. I'm happy with 15 to 20% annual return from swing trading stocks. A comfortable living.

I'm sure the guys making triple digit returns are out there, I've never met one.
 
deaddog said:
I agree. I'm happy with 15 to 20% annual return from swing trading stocks. A comfortable living.

I'm sure the guys making triple digit returns are out there, I've never met one.
More...

Eventually, triple digit guys increase their AUM and become double digits guys.
 
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