Oct
29
Speed Trading, from Victor Niederhoffer
October 29, 2010 |
How would the speed up stuff (see below) work in trading?
Trading while standing up?
Trading with a gun rather than a mouse?
Taking a fast 4 ticks? (guaranteed to lose money unless you have the infrastructure of a flexion)
Trading 3 markets in succession???
Larry Williams adds:
Going from yesteryear's 200 day moving average to a shorter one? Trading instant spreads?
Jim Sogi writes:
It's a whole new skill set, both different motor and mental with a learning curve. Years of practice with certain tools cannot be discounted. Like switching from squash to tennis to ping pong. Or longboard to shortboard.
Ralph Vince writes:
Great questions. Based on my own, limited, life experience, I would add that there is an element of a certain mental "groove," to all of this, necessary to success, not altogether very different than that of an athlete on the top of his game (we have discussed this at length in this forum– some great discussions on it I think) or when you are thinking a problem through– a very difficult, elusive one, threatening to drip off the edge of your consciousness…….and I'm not so sure that is even timeframe-specific, so long as you find your groove.
When I put on a trade, I KNOW I'm going to make money on it, I'm not worried about it one jot. You get into certain habits, which are a function of your cadence, and "settling in' to that, whereas I think it IS timeframe-specific, seems to be timeframe specific to the individual and how he trades.
I very much believe that the kind of "hurry up" trading you are describing here may fit certain individuals and may sabotage others. Even if on a purely mechanical basis. What comes to mind for me on this is trying to play simple, basic strategy blackjack at a table with a fast cadence– I can't handle it, and am certain to fumble it.
Ken Dreees writes:
It would be interesting to create a dynamic trading skills test in which you had mutliple positions open in multiple markets and were then given simulated info in a real time sense that caused market disruptions. You would be graded under criteria such as:
1. exiting safety
2. capital protection
3. Finding and exploiting panic etc.
Like a trading version of star fleet's test.
Jeff Watson adds:
Here's an interesting site with info on CBOT full seat prices from 1898-2004. There's a handy little excel download in the site with the high/low of CBOT seat prices on a yearly basis. 1942 was the year to go long the CBOT.
Russ Sears comments:
My opinion is that building up the endurance to concentrate for long periods of time is not like riding a bike. If you've been away from it a while train yourself back into it.
Taking scheduled stress relief breaks should be required to be on your best defensively, especially in volatile markets.
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