i have only watched the first half of the first episode- so far they aren't doing any hedging whatsoever. their definition of "trading like a hedge fund" seems to be limiting themselves to no more than 20% concentration in a stock upon entry.
Trading Like A Hedge Fund
- Thread starter CoolTraderDude
- Start date
Read James Altucher trade like a hedge fund for some great ideas.
surf
surf
There's more stuff in the other episodes where they start to build a "book"... But yeah, they don't really get into the trading too much.
Looked inside it on Amazon... I think I get most of what's in there... I'm not sure but didn't you run a hedge fund for a while...? What's your experience with these strategies...?
Altucher himself (Vishnu on ET) has said most of these strategies no longer work.
Based on my experience, they still work--- not as effectively as before, but most still work to a point.
James is very down on trading in general, despite being hyper successful at it. surf
Yes, but we never gained enough traction to survive after our anchor investor pulled out for reasons unrelated to performance.
I like the strategies in Altucher's book.
Pair trading risk is just as clear and present as in stocks, futures, and derivatives. 0 risk = 0 profit.
Yeah... What I've noticed is that it's a good way to make small steady predictable gains except when the trades turn against you. When they turn against you, you lose big!
You have to use more size to make a decent profit and you just pick up that small difference between the two. If they flip and they do occasionally, you lose huge on both sides.
Given a Stock(or Collective of instruments)that follows an index say Dow with a beta<1(very short term) & beta~1(a week or more) so that it is hedged slowly in an uptrend, but also falls much slower than the index when the market drops suddenly...to form a profitable spread,
what are the factors in implementing such a hedge fund lagging beta strategy (short fast,long slow)?
What aspect of collective CoIntegration to look out for?
Is correlation relevant in this approach?
Can options of a similar index(e.g SPY) be used to mimic the lagging beta part?
what are the factors in implementing such a hedge fund lagging beta strategy (short fast,long slow)?
What aspect of collective CoIntegration to look out for?
Is correlation relevant in this approach?
Can options of a similar index(e.g SPY) be used to mimic the lagging beta part?
Quick, call the fire department, someone said cointegration, hose that guy down.