trading models...

dgmodel

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in your opinion when a model gains popularity, does it lose effeciency, effectiveness and most importantly, profitability???
 
Quote from dgmodel:

in your opinion when a model gains popularity, does it lose efficiency, effectiveness and most importantly, profitability???

It depends on the model. If it is in synch with the supply and demand waves then the probability will go up, if it is other way around it may reduce its probability. I find that you have to always check your model with the sum of all the Bid sizes vs the Sum of all the Ask sizes for the duration of your trading cycles.
 
If your model is based on pure arbitrage, you can be sure that more competition will reduce your profitability. I don't mean some theoretical value arb, but where the advantage goes to whoever can identify a price discrepancy and wipe it out the fastest.
 
Quote from lescor:

If your model is based on pure arbitrage, you can be sure that more competition will reduce your profitability. I don't mean some theoretical value arb, but where the advantage goes to whoever can identify a price discrepancy and wipe it out the fastest.

Exactly!
 
Just so I am not misunderstood... because I am already getting PM's from people selling models and systems. I am looking for an Elite model, heck I am an elite trader ! Blondes with blue or green eyes preferred of course.
 
Quote from Kicking:

I too am looking for a model to support my trading desk. PM for inquiries.

I presume the requirements are 6 foot tall, double-D cup minimum, preferably blond? Experience in trading not required :D
 
Quote from EliteThink:

Do you have a picture of someone you have in mind? :)

We had one at the last place I worked, she was a good trader too (*). In fact, in yet another place we had a pricing model (she was a quant :).
Locally, we mostly have sales models, actually a few of them - "Babe factor" on IB trading desks is pretty high these days


* dead now, unfortunately
 
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