The challenge: What is cheap and what is expensive? - page 9

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DmitriyN:
The owner of the topic is against the tasks associated with the trade being discussed in it. But, how he goes about the markets and shops is interesting. I think it is unlikely that he buys on the haystacks :)


In fact, it's not clear how you shop. I mean, how do you manage to buy something if you are always in a dilemma: cheap/expensive.

Buying at the market is not easy, but very simple:

1) you walk from the entrance inside, on the way you ask the price and look at the goods;

2) based on the information about the goods and the prices, you decide "who to buy from";

3) you go back to the vendor and buy, if you want to haggle.

As you put it, this is a spherical horse in a vacuum.

 

We already have 1/2 of the prices to analyse the market.

If we find potatoes below the minimum price, we buy 5 sacks, or as the row increases, we buy closer to the minimum price.

There's no other way.)))

 
PapaYozh:


In fact, it is not clear how you make purchases. I mean, how do you manage to buy something if you are always in a dilemma: cheap/expensive.

Buying at the market is not easy, but very simple:

1) you walk from the entrance inside, on the way you ask the price and look at the goods;

2) Based on the information about the goods and the price, you decide "who to buy from";

3) you go back to the vendor and buy, if you want to haggle.

As you put it, this is a spherical horse in a vacuum.


Let's take this formulation: there are portfolio managers who decide to buy and sell large blocks of shares. And there are executives to whom these orders are passed on. For example: buy today a share in the volume of V1. It is the doer's business when and at what price to buy. How do you judge the doer's quality of work? The criterion - buy well or buy poorly. How do you want the performer to buy at the best price (you must buy by the end of the day)?
 
Avals:

There are portfolio managers who make decisions to buy and sell large blocks. And there are executives to whom these orders are passed on. For example: buy today a share in the volume of V1. It is the doer's business when and at what price to buy. How do you judge the doer's quality of work? The criterion - buy success or failure. How do you want the doer to buy at the best price (to buy until the end of the day)?
  1. Managers are managers (pardon the tautology).
  2. The performers are the brokers

If a broker is not catching mice, they need to be changed.

Orders without price, volume and direction will only be executed by an idiot, because in the absence of specificity in the order, the order executor will in any case become a deadbeat.

 
Reshetov:
  1. Managers are managers (pardon the tautology)
  2. Executors are brokers

If a broker is not catching mice, they need to be changed.



Call it what you like, but the big institutions have a specialisation. Those who make decisions on long term buying/selling do not sit in the market to realise it, hide their intentions etc. A broker is an intermediary who relays orders to the exchange with minimal delay.
 
Reshetov:

Only an idiot would execute orders without price, volume and direction, because in the absence of specifics in the order, the executor would be the arrow in any case.



The order is to buy the necessary volume by the end of the day. What is not clear?
 
Avals:

The order is to buy the right volum by the end of the day. What's not clear?
Everything is clear to an idiot. And an experienced Vasya Pupkin from the dealing department does not understand what he will be criticized for, so he will check the maximum price level with the manager.
 
Reshetov:
Everything is clear to an idiot. And an experienced Vasya Pupkin from the dealing department does not understand what he will be criticized for, so he will ask the manager for the maximum price level.


Well, then you don't need such managers - you can set the buy limit yourself

For example, it was decided to buy a decent volume of shares - 10% of its average daily turnover. The specialist was instructed to do this. Does he have to buy the entire volume at the opening of the market? Or to take the price on a pullback below the maximum allowable price written down from above?

 
Avals:


Well, then they don't need such managers - you can set the limit yourself

Well, then why do you need such a manager?

Try posting TOR for a job in the spirit of: "Write me this, I don't know what, and pay me on results. And they'll send him away.

This is why nobody needs a manager who cannot clearly formulate a clear order to the dealing department so that it is clear to the performers what they are required to do and what they should not do. The manager should manage and the executives should execute (excuse me for another tautology).

 
DmitriyN: ... Everyone agrees that the price should be lower than the market average, but how much, how to find out.

For example like this(ref)

Iceberg Algorithm - implies execution of the total order volume by placing quotation orders with a total volume not exceeding the specified "visible" amount. Bids continue to be placed until the total amount of the order is executed. ...

Algorithm TWAP ( Time Weighted Average Price ) - implies uniform execution of the total order volume for a given number of iterations within a certain period of time, by placing market orders at the best bid or offer prices, adjusted by a certain percentage deviation.

Algorithm VWAP ( Volume Weighted Average Price ) - implies uniform execution of the total volume of the order for a specified number of iterations over a certain period of time, by placing market orders at the best bid or offer prices, adjusted by the specified percentage deviation, but not exceeding the weighted average market price of the instrument, calculated from the moment the algorithm starts.

Here are some more algorithms and a post by Avals to help

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