The Most Sure-fire Hedge Fund Possible

if this idea worked someone would already be doing it.

those London traders, they made or lost just a few percent. i bet most was just lost due to the huge spreads over there, high commissions, and most likely, variance of the few trades they did.

if anyone thinks this idea actually works you really haven't thought it through. this site gets dumber every day


hey my friend loses thousands every year gambling on sports. should i take the opposite teams???? i'm gonna be rich!!
 
Quote from endsongs:

A lot of the losses from trading come from commission, fees, and slippage. And those wil be there regardless if you invert it or not.
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Also, the spread. You & the trader would be on opposite sides.

Concept does not work as it is the same as taking random entries with a fixed stop loss and a profit target 3X stop loss.
 
Quote from bespoke:

Hey my friend loses thousands every year gambling on sports. should i take the opposite teams???? i'm gonna be rich!!
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ummm? that holds, btw.


But by and lage, you guys are taking the idea far too literally.

As I said earlier, it's a thought experiment. The point is given by the last line in my original post. But if you truly are of the idea that, as an earlier poster put it, "the opposite of a bad trader is also a bad trader", then you should stop trading now.
 
Quote from Random.Capital:

Your inverse trader therefore goes short, profit target is -$10, same trailing stop.
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Wrong. The inverse trader doesn't have a trailing stop. He exits when the bad trader exits, right or wrong.
 
Quote from bespoke:

hey my friend loses thousands every year gambling on sports. should i take the opposite teams???? i'm gonna be rich!!
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Actually yes. As long as he is CONSISTENT. And stop crying about the idea, since you weren't able to show why it wouldn't work.

200 years ago you would have said: If flying was possible somebody would be doing it. :)
 
Quote from Pekelo:

The inverse trader doesn't have a trailing stop.
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Then you aren't trading the inverse strategy. Which has implications when one of your blind squirrels finds a nut and actually lets it run to 10x or etc.
 
Quote from brettman9:

ummm? that holds, btw.
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my bad. i've never gambled on sports. i figured there were some fees, commissions, and the sort. so if me and my friend take the opposite side of a bet we will always break even between the both of us? (i'm curious)

but yes... you guys have a great idea... you should go pitch it to hedgefunds or form one yourself with the capital you must have from trading


peleko. i guess you'll have to have 100 traders but hope to god one never sees a Level1/2 or time and sales. or even some realtime charts. would be weird to see an uptick when its supposed to be a down tick. just let them bang away on their keys watching delayed yahoo charts
 
Quote from Random.Capital:

Then you aren't trading the inverse strategy. Which has implications when one of your blind squirrels finds a nut and actually lets it run to 10x or etc.
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The idea was never about inverse STRATEGY. It was about inverse TRADING, doing the opposite of the squirrel.

Yes, there is a chance that one of them hits it out of the ballpark, but in trading, you take chances. Also you can build in safety valves against such occurance.

And really, what is the chance of that happening? As long as the chance is way less than 10%, the system should make money.

By the way the idea would be best for reality TV. Teach them, follow their straggle, then announce that they were reverse traded.
 
Quote from brettman9:

ummm? that holds, btw.


But by and lage, you guys are taking the idea far too literally.

As I said earlier, it's a thought experiment. The point is given by the last line in my original post. But if you truly are of the idea that, as an earlier poster put it, "the opposite of a bad trader is also a bad trader", then you should stop trading now.
More...

Dude.

Let me put is in a simple way you can understand.

IT DOES NOT WORK!
 
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