I also don’t think that the Covid-19 pandemic has changed the way I trade. I have been using my strategy for the last few years and have been making good money with it.
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When a model becomes extinct
- Thread starter Zortauk
- Start date
like if your model implies a high ratio of short positions then during a bubble period it may exhibit bad performance. Or for example your model is not robust to volatility changes then it could deteriorate.But the question is after how long of a time..one would give up on the model after it had such a long time of consistency. Outsiders say that it is normal that it is not performing because it is the PANDEMIC, but i dont really understand how and why pandemic has changed trading. MY model is purely based on price action not looking at volume or any other indicators.
%%I also don’t think that the Covid-19 pandemic has changed the way I trade. I have been using my strategy for the last few years and have been making good money with it.
VIRUS related did seem to hit hard some weak companies ; especially if they went bankrupt like DAL......................................................BUT even MCD.... a fast food place that people dont really have to go to is doing fine. Sounds like Zortauk needs to look more.......
%%I guess it will return to work next quarter.
Maybe;
4TH QUARTER tends to do bigger%. BUT one hedge funds does the earnings play but more than that...................................................................................................
Zortauk
1) you dont tell us much about what you do beyond "since covid" and "illiquid", so how can we to know? though, those two words may be your clue: liquidity in bullshit stocks really jumped after covid, yes?
2) your trading seems to be earnings related. there is a ORH ("outside regular trading hours") gremlin who piles on stocks on earnings in the thin ORH market. like a master brain-twister, he keeps switching around his strategy. one earnings season he jumps on disappointments, the next season he jumps on positive surprises.
https://lanternsatdaybreak.wordpress.com/2021/10/27/weaponizing-options-around-earnings/
its probably related to NOPE indicator. https://www.bloomberg.com/news/vide...ons-market-impact-on-price-lily-francus-video
basically, the algo reads the preearnings option position and then goes big premarket to force options mms to cover
3) on a more general note, markets change all the time. i spent the first 15 years of my career trading panics in EM debt for obscene profits. then the big boys moved in, liquidity went up and eye popping returns disappeared almost overnight and have not been seen since
1) you dont tell us much about what you do beyond "since covid" and "illiquid", so how can we to know? though, those two words may be your clue: liquidity in bullshit stocks really jumped after covid, yes?
2) your trading seems to be earnings related. there is a ORH ("outside regular trading hours") gremlin who piles on stocks on earnings in the thin ORH market. like a master brain-twister, he keeps switching around his strategy. one earnings season he jumps on disappointments, the next season he jumps on positive surprises.
https://lanternsatdaybreak.wordpress.com/2021/10/27/weaponizing-options-around-earnings/
its probably related to NOPE indicator. https://www.bloomberg.com/news/vide...ons-market-impact-on-price-lily-francus-video
basically, the algo reads the preearnings option position and then goes big premarket to force options mms to cover
3) on a more general note, markets change all the time. i spent the first 15 years of my career trading panics in EM debt for obscene profits. then the big boys moved in, liquidity went up and eye popping returns disappeared almost overnight and have not been seen since