tech/a
No Ordinary Duck
- Joined
- 14 October 2004
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For tech/a
“But everything was not fine. Long-Term, which had calculated with such mathematical certainty that it was unlikely to lose more than $35 million on any single day, had just dropped $553 million — 15 percent of its capital — on that one Friday in August 1998. It had started the year with $4.67 billion. Suddenly, it was down to $2.9 billion. Since April, it had lost more than a third of its equity.”
This where the calculation came from.
jog on
duc
If the stock had lost a third since April there is a high chance you wouldn't have been in the trade at the time it dropped 15 %.
Duc your concentrating on outliers
Your making generalisations
Well designed systems will survive outliers.
TechTrader missed the 2008 melt down although not at
It's highest open profit I closed out completely with enough
To buy a house 3 mths before it crashed
90 % of positions closed out on rules in the system. With only one open
And 7 yrs of live trading on the Chartist I decided I'd had enough.
On diversification
I now mainly trade DAX and FTSE Futures
I can control $100's of 1000s of Stock in one contract
I can trade long and short.
This what I was alluding to in the thread.
Much more coming on the topic of Systems development.
But not here.