Reversing a losing system?

Quote from dom993:

I have found the reverse works quite well ... I mean, start from a winning system, take opposite side on each signal with identical trade management ... results (for me) was negative, to the tune of -150%
(~ -90K P&L for 600 "inverse" trades vs ~ +65K for 600 "normal" trades)(position size 1 contract / trade).
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Yes this would work assuming one finds a workable system like you have...

Many think just "reversing" will give them the keys when in fact the reason they are losing is because they can't overcome execution costs with whatever method they are using.

I have only found a couple things that work OK on longer timeframes , nothing to write home about so I don't even use them.
 
Quote from pistolpt:

If you have lost money year after year on trading, why not do the opposite of what your strategy says? Like George Costanza - do the opposite.
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I worked with a "professor" who said just that. Lets turn our market making system into a breakout system... do the opposite. I still wonder how much money he lost throughout his career.
 
Quote from 2rosy:

I worked with a "professor" who said just that. Lets turn our market making system into a breakout system... do the opposite. I still wonder how much money he lost throughout his career.
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If you inverted a market making system on an instrument that had a *very fine* tick increment, that could be plausible, I think. So long as it was buying/selling a lot of the liquidity, and exhausting the other market makers. <evil grin>.
 
Quote from Rationalize:

If you inverted a market making system on an instrument that had a *very fine* tick increment, that could be plausible, I think. So long as it was buying/selling a lot of the liquidity, and exhausting the other market makers. <evil grin>.
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geez, maybe your the guy i worked with
 
Quote from 2rosy:
If you inverted a market making system on an instrument that had a *very fine* tick increment, that could be plausible, I think. So long as it was buying/selling a lot of the liquidity, and exhausting the other market makers. .
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Quote from 2rosy:

geez, maybe your the guy i worked with
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Come on fella. Think it through, and post something intelligent.

Would it be a good idea. Why / why not. Where the error is.

I'm pretty sure you're smart enough :)
 
If the system consistently lose, you might have to figure out why first.

If it consistently lose because of commission and spreads, then reversing it wouldn't do you any good.
 
I made $$$ reversing a 100% losing system for 18 months.... till my programmer learned that there was a 0/1 mistake somewhere so we traded it "the right way".

If it makes $$ who cares - just know it can lose just as fast...
 
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