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How do you find new trading ideas?

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 Ionut Pintilie, Algorithmic Trading Systems - Reflective Practitioner

 Thursday, June 19, 2014

There is a general acceptance that the profitable lifespan of trading strategies/algos has decreased. Therefore, as traders or/and ATS developers we are, sometimes or even constantly, searching for new trading ideas. Do you have a formal/informal process for developing new ideas?


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5 comments on article "How do you find new trading ideas?"

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 private private,

 Friday, July 18, 2014



Another source of ideas: http://www.tradery.com/


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 Guy R. Fleury, Independent Computer Software Professional

 Friday, July 18, 2014



@Jeff, you say: <...if you don't know how to trade or program, then the goal of beating the pros is hopeless. > I would not agree with such a statement. Nothing is stopping you from doing your best. You have to look at the trading problem with the tools you have. If all you have is a hammer, all screws start to look like nails, but it still can get the job done.

You will find a lot of people playing the “game” with no programming. I would put Mr. Buffett in that category for instance. His trading method does not need a computerized automated trading strategy, yet, he is doing very well, and has done so for the past 50 years. For all the funds out there that have had a 50 year track record, he still is at number one. There is much to learn from the how and the why he succeeded so well. I know I use a lot of his trading methodology and philosophy in my trading scripts.

You need to be consistent with your vision of things. If I'm looking at 20+ years trading scenarios, why would I bother with nanosecond spreads? I'm the kind of guy that will even program an automated version of the Buy & Hold trading strategy. If your trading philosophy has an upward bias, triple inverse ETFs should not be on your menu. Unless you want to short them which then would be consistent with your outlook of things.

Most short term traders don't want to look at what their trading programs will do over the years, especially if a year is considered long term. But still, if one does not look at what could be their portfolio in 20+ years from now, then they are “gambling” a lot more than I do. But one can do that too.

You have no control on how stock prices will move, but you are in control of when you press enter, that it be using an automated trading script or by discretionary means.


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 Jeff Little, SDE at Amazon.com

 Friday, July 18, 2014



"You need to be consistent with your vision of things. If I'm looking at 20+ years trading scenarios, why would I bother with nanosecond spreads?"

Good point. My comment was mainly geered toward short time horizons. Warren Buffet said that in the short term the market is a voting machine, but in the long term it's a weighing machine.

Also, someone with mediocre trading skills might be able to do well in trading if he or she has good risk management skills. A winning strategy becomes a losing strategy if you trade it with the wrong leverage.

I would say that trying to gain 15% a year while the market makes 10% is a completely different skillset than trying to make 40% a year while keeping drawdowns under 10%. The latter is far more rare and becomes impossible after you pass a certain account size (but also becomes far less needed after you pass a certain account size... :) ).


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 Volker Knapp, Consultant bei WealthLab

 Friday, July 18, 2014



@David Garrard

The site that you mention covers many strategies that have been published by Wealth-Lab Members. Not always credit is given to the good people who published it on www.wealth-lab.com.


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 Brian Nichols, Currency and commodities futures trading

 Monday, July 28, 2014



Guessing trading is like fashion--what was old is new again--so mine historical habits.

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