Highbrows and Rednecks: GMTA
I just read this quote in an article on Teresa Lo’s PowerSwings.com site:
Many systematic traders spend the majority of their time searching for good places to initiate. It just seems to be part of human nature to focus on the most hopeful point of the trading cycle. Our research indicated that liquidations are vastly more important than initiations. If you initiate purely randomly, you do surprisingly well with a good liquidation criterion.
(from Dailyii.com)
Except for the $5 words, it’s an idea this old boy completely agrees with. With which this old boy completely agrees. Whatever. Here’s a quote from one of my own ramblings:
Our success doesn’t depend so much on which method we use to enter positions (except for “they say”). It depends on what we do with those positions once entered.
Few positions are losers from the instant we enter until we exit– most are in the money at some point. The gains or losses we eventually take on them are due to our exit strategy.
Simply put: It’s all in the stops, baby. It’s all in the stops.
Ok. I’m outta here for the weekend now, for real.
estocastica said,
October 15, 2006 @ 2:23 pm
Great blog, it’s one of my daily reads. I really like your site’s design, layout, and content — very pleasant for the reader and easy to explore. Also, I wanted to say thanks for having me on your blogroll. Best of luck!
Will said,
October 15, 2006 @ 9:37 pm
esto — Thanks! I’m forever doodling with the CSS and hacking the Wordpress to try and make it more readable. You know how we wish we could have everything right there at the top, front and center! Also, I appreciate your taking the time to read my ramblings. I enjoy your perspectives on trading as well.