Checked and saw I missed another good trade that would have had 0 drawdown. Should have been +4% day...
The Grid function on C2 allows one to search for specific parameters. There are a few good traders that haven't shown up in the leaderboards due to being too new or some such thing. There are some that have greater WR than me, some that have greater % return for time adjusted performance, but I seem to have better risk-adjusted returns. The three losses shouldn't have been losses according to the system, but I don't care because I don't like trades to run off too much. It typically catches short term extremes with little to no drawdown so those make up for the ones that run away. I don't care if they become losses or get back later. High WR attracts internal hubris, for me personally at least. Trading with stock rather than options has gotten me a lot more comfortable in taking losses. I think this is why I have relatively lower drawdowns; I was forced to improve timing when trading short term options so trading with stock makes it easier.
There are tons of trades that would work out even with tight stops that have positive reward expectancy, and in order to capture them, it becomes a matter of difference between Best vs good vs worse. The Medallion fund supposedly has a winrate of something like a little over 50%. That is, their edges are marginal. Why are they so profitable? Because there are so many edges and strategies they use in conjunction with one another. I would have to program some technical correlation-divergence models with certain types of probability distributions to take advantage of these kinds of scenarios. It'd be in the future because its a lot of work and I don't know any of that- but it seems like it should work.
The Grid function on C2 allows one to search for specific parameters. There are a few good traders that haven't shown up in the leaderboards due to being too new or some such thing. There are some that have greater WR than me, some that have greater % return for time adjusted performance, but I seem to have better risk-adjusted returns. The three losses shouldn't have been losses according to the system, but I don't care because I don't like trades to run off too much. It typically catches short term extremes with little to no drawdown so those make up for the ones that run away. I don't care if they become losses or get back later. High WR attracts internal hubris, for me personally at least. Trading with stock rather than options has gotten me a lot more comfortable in taking losses. I think this is why I have relatively lower drawdowns; I was forced to improve timing when trading short term options so trading with stock makes it easier.
There are tons of trades that would work out even with tight stops that have positive reward expectancy, and in order to capture them, it becomes a matter of difference between Best vs good vs worse. The Medallion fund supposedly has a winrate of something like a little over 50%. That is, their edges are marginal. Why are they so profitable? Because there are so many edges and strategies they use in conjunction with one another. I would have to program some technical correlation-divergence models with certain types of probability distributions to take advantage of these kinds of scenarios. It'd be in the future because its a lot of work and I don't know any of that- but it seems like it should work.
