What’s the worst strategy you’ve ever traded? - page 2

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Osmar Sandoval Espinosa #:
 Never heard of MFT before, what is the difference between it and HFT?
IMHO, there's a common fallacy that HFT is synonymous with scalping. HFT is thousands to millions of automated trades per day that exploit the process in which orders are executed─generating minuscule profits over and over again and/or generating liquidity rebates. Scalping is simply intraday trading with short hold times. MFT is any form of trading that falls between intraday trading and positional (LFT) trading. I estimate that the most prevalent form of MFT is swing trading because (a) I do it, and (b) it's tough to imagine multiday holding times that don't capture swings. Positional traders take weeks, months, or years to place a fresh trade─potentially adding to their aggregate position along the way.
 
Ryan L Johnson #:
IMHO, there's a common fallacy that HFT is synonymous with scalping. HFT is thousands to millions of automated trades per day that exploit the process in which orders are executed─generating minuscule profits over and over again and/or generating liquidity rebates. Scalping is simply intraday trading with short hold times. MFT is any form of trading that falls between intraday trading and positional (LFT) trading. I estimate that the most prevalent form of MFT is swing trading because (a) I do it, and (b) it's tough to imagine multiday holding times that don't capture swings. Positional traders take weeks, months, or years to place a fresh trade─potentially adding to their aggregate position along the way.

Interesting. :)

I had a vague idea of HFT, I think there is an story about a trader that did this and got to jail for doing this (while big institutions did it).

Didn't know about MFT and LFT.

 
Are grid strategies bad?
 
Osmar Sandoval Espinosa #:
I had a vague idea of HFT, I think there is an story about a trader that did this and got to jail for doing this (while big institutions did it).

Yeah. Registration, compliance, reporting, and fees apply to HFT in the U.S. stock markets. A trader can't just jump into HFT and have at it. In contrast, the U.S. Futures markets are still the HFT Wild West─likely allowed because liquidity there is higher than that of the stock markets.

 
Osmar Sandoval Espinosa #:
Are grid strategies bad?

Here I go again on grid trading...

It depends on what you mean by the word, grid. It's typically associated with Martingale (a.k.a., Martingarbage). I don't know why. I mean, just try to draw a tic-tac-toe grid with only horizontal lines. But I digress...

Equidistant horizontal lines can also be used for scaling out, pyramiding, etc.─none of which are nearly as dismal as Martingarbage.

 
The worst forex strategies are trading without a plan and using martingale. One relies on luck, the other multiplies losses.
 
Ryan L Johnson #:

Yeah. Registration, compliance, reporting, and fees apply to HFT in the U.S. stock markets. A trader can't just jump into HFT and have at it. In contrast, the U.S. Futures markets are still the HFT Wild West─likely allowed because liquidity there is higher than that of the stock markets.

I'm not sure how is the regulation in Mexico, but I think there is no law, not sure how legal could be using a HFT EA in other countries...
 
Ryan L Johnson #:

Here I go again on grid trading...

It depends on what you mean by the word, grid. It's typically associated with Martingale (a.k.a., Martingarbage). I don't know why. I mean, just try to draw a tic-tac-toe grid with only horizontal lines. But I digress...

Equidistant horizontal lines can also be used for scaling out, pyramiding, etc.─none of which are nearly as dismal as Martingarbage.

For what I have seen, the most used is smthn like this: 

Grid Trading Strategy in Forex

I thinks this is the typical use of a grid strat.

Is this the Martingale version that you mention?

 
RENATA PALIOKIENE #:
The worst forex strategies are trading without a plan and using martingale. One relies on luck, the other multiplies losses.
Like using a roulette, lol.
 
Osmar Sandoval Espinosa #:

Is this the Martingale version that you mention?

Basically, yes, but that chart image implies the use of a Hedge mode account. In a Netting mode account, all trades would likely be closed once price rises above the average position price. They're both so bad, I can't decide which is worse.😅
Osmar Sandoval Espinosa #:
I thinks this is the typical use of a grid strat.

Thanks for confirming:

Ryan L Johnson #:
It's typically associated with Martingale (a.k.a., Martingarbage).
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