Search found 10 matches

by bagherra
Sat Jan 10, 2004 2:18 pm
Forum: Trader Psychology
Topic: Too much reading ...
Replies: 58
Views: 49464

Business School

Dear RS, I'm sorry if I came off as knocking business school. It was a great experience for me(I finished nine years ago), full of wonderful teachers and fellow students, and I learned a lot about many subjects. My friends from business school who went into the hedge fund business--and there were qu...
by bagherra
Fri Jan 09, 2004 7:53 pm
Forum: Trader Psychology
Topic: Too much reading ...
Replies: 58
Views: 49464

Business Schools

One good reason to attend business school is that if you see your classmates starting hedge funds after graduation, it's easier to imagine yourself doing the same thing. However, this is an expensive way to develop confidence. As Bruce Lee said, 'If you want to learn to kick...kick!' Going to school...
by bagherra
Sat Dec 13, 2003 10:51 am
Forum: Trader Psychology
Topic: NLP - anyone benefit?
Replies: 9
Views: 10512

NLP & Hypnosis

I've had a lot of experience in the past three or four years with both NLP and hypnosis. Both can be very effective in changing behavior, though nothing works all the time with everybody. The field is full of 'cult of personality' types, so please beware, but if you look carefully you'll find people...
by bagherra
Sun Sep 28, 2003 12:40 pm
Forum: Testing and Simulation
Topic: ATR Value
Replies: 56
Views: 40136

Exotic Power-Law?

Menelik, What is an 'exotic power-law distribution'? It sounds cool. Back testing has serious drawbacks, as the discussion of the deterioration of PGO's results over the past ten years demonstrates. There is a danger of taking too large a position size on the basis of backtested results and blowing ...
by bagherra
Fri Aug 29, 2003 12:11 am
Forum: Testing and Simulation
Topic: ;-)
Replies: 16
Views: 9708

Discretionary Approach

Discretionary traders should benefit from a higher win ratio and lower drawdowns. Criticism of discretionary trading suggests that the discretionary trader will miss a significant number of winners. I take it this is not your experience? I share your scepticism about backtesting. It seems that the h...
by bagherra
Wed Jul 09, 2003 6:48 am
Forum: Stocks
Topic: shorting stocks
Replies: 7
Views: 8689

Shorting Stocks

I have some prejudices here, but I think with reason. It seems to me that shorting stocks with a mechanical system would be difficult to do effectively, because the information flow on the short side is different from the information flow on the long side. Buying momentum longs tends to work because...
by bagherra
Fri Jun 27, 2003 8:15 am
Forum: Trend Indicators and Signals
Topic: How do you determine the "trend" aside of a 20-day
Replies: 25
Views: 20296

Short Portfolio

I think it would be tough to devise a functional short portfolio based on downtrends in the stocks. Shorts of the high PE earnings momentum variety typically react VERY SUDDENLY, not gradually, to bad news. Their information flow/price reaction is different from longs. Also, I'm doubtful that equity...
by bagherra
Fri May 30, 2003 12:01 pm
Forum: Testing and Simulation
Topic: Psychologically Robust Systems
Replies: 12
Views: 10163

Psychologically Robust Systems

There are other methods, such as value investing and long/short equity hedge funds, that work. However, the public finds it difficult to keep money in a system that underperforms over long periods. Most value investors underperform the market between 30% to 40% of the time, even though their results...
by bagherra
Fri May 02, 2003 8:13 am
Forum: Stocks
Topic: Watching Industry Group Action for Trends
Replies: 10
Views: 9736

Industry Groups

I have been tracking industry groups for a long time, first via the SRC Babson-United weekly chartbooks--which come out monthly--and then through electronic sources such as TC2000. I dropped TC2000 because it didn't permit the creation of customized industry groups. (If any of you know something tha...
by bagherra
Mon Apr 28, 2003 11:01 pm
Forum: Testing and Simulation
Topic: Mixing Fundamentals and Technical Trading
Replies: 2
Views: 2640

Mixing Fundamentals and Technical Trading

Before the split at g.c., I seem to remember econometrics being a topic of interest on their website. It led me to wonder if economic markers could help a trend trader decide when to bet bigger. To put this in context, I have long been a fan of Marty Zweig's simple system for staying ahead of the st...