Why would the President be my Broker?
- Thread starter jinxu
- Start date
Come on people, apply some basic statisticsto this. Think about it this way, if you have enough accounts at your brokerage, even if every one was controlled by monkeys throwing darts at a list of stocks, then some of the accounts by pure random chance would show outsized returns. And you'd be an absolute moron to copy those account's trades going forward based on that observation. This is effectively the definition of data mining! I've got hundreds of backtest that showed spectacular results over months and even years that failed as soon as I did an out of sample test, this is exactly that only a completely naive version of it.
There may be a dipshit employee at a brokerage who doesn't grasp basic statistics, doesn't understand how the brokerage makes its risk free money from commissions and the idiocy of trading that for trading, and doesn't care about the significant penalties they face. But it makes no sense for the brokerage itself to engage in this anyone who does is enough of a moron you probably don't need to worry about them reverse engineering anything!
There may be a dipshit employee at a brokerage who doesn't grasp basic statistics, doesn't understand how the brokerage makes its risk free money from commissions and the idiocy of trading that for trading, and doesn't care about the significant penalties they face. But it makes no sense for the brokerage itself to engage in this anyone who does is enough of a moron you probably don't need to worry about them reverse engineering anything!
So, am I right that you say the Russians and Chinese would maybe do this? Because then you confirm it is real and has nothing to do with ego.
comment about the russians and chinese was supposed to be humorous and not the reality.
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Maybe he is just monitoring your commissions/his house payment.
In 2002 my broker called me one day and said he had a couple of guys with large accounts who just cant make money and asked if he could give them my number. The broker was just interested in the commissions. I added the guys to my friends and family quota for 25% of profits.
In 2002 my broker called me one day and said he had a couple of guys with large accounts who just cant make money and asked if he could give them my number. The broker was just interested in the commissions. I added the guys to my friends and family quota for 25% of profits.