Archives of “January 2, 2019” day

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The algos are bearish

  
Analysis, Education
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WSJ story says trend-following algos have sold

Trend-following investment strategies-a computer-based way of trading that has become a major force in some markets-have gone from bullish to bearish to a degree not seen in a decade, according to AlphaSimplex Group.

The WSJ writes about how algos are an increasingly big part of investment decisions and that they’re still uniformly bearish.

I’m skeptical of this kind of thing, because how is  AlphaSimplex Group supposed to know what the algos at Renaissance or Bridgewater are doing? At best, they’re guessing.

Anyway, the story is some interesting reading.

20 Reasons :Why 95% Traders Not Making Money

  
  Education
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  1. They risk too much to try to make so little.
  2. They trade with the probabilities against them.
  3. They think trading is easy money.
  4. Instead of focusing on learning how to trade they focus on getting rich.
  5. They blow up due to improper position sizing.
  6. With no understanding of the mathematical risk of ruin they are doomed after the first long string of losing trades.
  7. Blindly following a guru that leads them down the road of destruction.
  8. They don’t do their homework.
  9. They trade opinions not robust systems. (more…)
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