LTCM , Quants and averaging

[Pure Pip Producer]

If you read about "Long-Term Capital Management" then you will see only "external" actor saved some money.
There is good book about LTCM

LTCM had lots of clever people. Good riskmanagers ( human ) Very good traders and "exit" plan but couldn't apply when they got a hit.

cf : https://en.wikipedia.org/wiki/Long-Term_Capital_Management

LTCM was made by only stupid Quants, that i hate.

We are at the opposite of Quants.

We are "Quals".

 

[Pure Pip Producer]

Really, i like to speak with traders, but i will not speak with traders who average down.

I'm sorry to be honest.

But traders who average down pull the debate down...

That's why i don''t speak with peolpe in general.

I would like to speak with people who understand the risk management so much, that they scale in their positions...

So i wish you good luck in your averaging down strategy. You will need it, my friend.

Have a nice day.

 

[CavaliereVerde]

Really, i like to speak with traders, but i will not speak with traders who average down.

I'm sorry to be honest.

But traders who average down pull the debate down...

That's why i don''t speak with peolpe in general.

I would like to speak with people who understand the risk management so much, that they scale in their positions...

So i wish you good luck in your averaging down strategy. You will need it, my friend.

Have a nice day.

Try to control your instincts and behave...

 

[hefoba]

Really, i like to speak with traders, but i will not speak with traders who average down.

I'm sorry to be honest.

But traders who average down pull the debate down...

That's why i don''t speak with peolpe in general.

I would like to speak with people who understand the risk management so much, that they scale in their positions...

So i wish you good luck in your averaging down strategy. You will need it, my friend.

Have a nice day.

Good then I know ...

 

[SteadyWins]

Go in big DD is not easy and put a lot of pressure on you as trader. So RM will help you as trader.

RM has been developed to normalize risk between all Darwins (to compare apples with apples) and to protect investors from reckless traders. But never to protect the trader of course.

But I think I understand what you mean. Something like: "I lost 20 percent of my account, but look, it is not too bad, my Darwin just lost 8 percent, let's go on".

Honestly, on the long term, thinking in that way won't help a trader at all I'm afraid. In fact, I think the opposite is true. It will keep him from addressing the cause of the 20 percent drawdown.

 

[SteadyWins]

Try to control your instincts and behave...

I agree with that.

Like Pure Pip Producer, I also reacted a bit irritated / with some emotions to hefoba last week. Will try to not do that again.

But I can understand Pure Pip Producer. I think that he and I have very comparable views on risk management, and these views are diametrically opposed to those of hefoba.

That can sometimes lead to some irritation on the forum, but also to some entertainment

 

[Pure Pip Producer]

Those who want constructive criticism on risk management can go to check my trading journal...That's all

That's probably better than speaking and speaking and speaking again...

 

[hefoba]

But I can understand Pure Pip Producer. I think that he and I have very comparable views on risk management, and these views are diametrically opposed to those of hefoba.

That can sometimes lead to some irritation on the forum, but also to some entertainment

I was not talking about my trading. I was giving examples of historical events where RM would solve some issues.
I do not plan to write about my trading but my view of events and my view of different current situations.

If people can not accept that I'm sorry for that.

I have no time to fight so some nice diner and IRL life will be good for me.

 

[CavaliereVerde]

This is a topic for suggestions on how to deal with Darwinex risk manager.

 

[Pure Pip Producer]

This is a topic for suggestions on how to deal with Darwinex risk manager.

Exactly...!

So, who deal better with the Risk Manager ?

Who can give lessons and who have to listen?

 

[Pure Pip Producer]

I was not talking about my trading. I was giving examples of historical events where RM would solve some issues.
I do not plan to write about my trading but my view of events and my view of different current situations.

If people can not accept that I'm sorry for that.

I have no time to fight so some nice diner and IRL life will be good for me.

LTCM was not a RM problem!

They couldn't exit from the Market because of the liquidity.

That's why they failed...

 

[CavaliereVerde]

Who can give lessons and who have to listen?

Nobody, everyone brings his own experience without insulting different styles.
We have to try to avoid behaviours like "I know everything and you are a stupid"

 

[Pure Pip Producer]

Nobody, everyone brings his own experience without insulting different styles.

1) I don't agree

2) I didn't insult, i said "i'm sorry to be honest".

3) I simply despise that kind of trading... Can we?

4) Averaging down is not a style, it's a cognitive biais.

 

[Pure Pip Producer]

Better i don't speak here anymore, the level is really too low.

It is not what i'm looking for.

 

[CavaliereVerde]

I agree that averaging down is an element of potential danger and I dont' average down, but I try to be a bit open minded, so I am not certain that every trader that averages down is a gambler doomed to blow.

 

[Pure Pip Producer]

That's not true. From the moment, you even average down 1 positon, that mean you have this cognitive biais.

I didn't say gambler.

 

[hefoba]

I agree that averaging down is an element of potential danger and I dont' average down, but I try to be a bit open minded, so I am not certain that every trader that averages down is a gambler doomed to blow.

I do not see how I trade can make that all I say is wrong.
I'm here to share views but I'm probably wrong todo so.

When one is young, one can become distracted and overconfident.
Gerard Pique

 

[Pure Pip Producer]

I do not see how I trade can make that all I say is wrong.
I'm here to share views

My dear hefoba, your view is not your view.
It is the view of millions and millions of traders.
Probably 99%. All those who think they finally can average down safety...
Until the wrong serie comes, then they can not manage the DD.
We know that, we were like that, we don't even want to speak about that anymore 🙏
Discuss about that is really losing time...

 

[Pure Pip Producer]

We must become a "law of series" expert to manage a DD.
And what is the most funny and paradoxical, it's that the "law of series" experts are gamblers.
But not Gamblers as we think. They are called : Advantage Players.
Advantage Players are the only 0.1% of the Gamblers.
Those who win.
Always the same rate... like in trading, it's the same.
So, first, i would say that we must learn all about this branch of the theory of the games.
Yes! To manage a DD, learn all what is possible to learn about : "the law of the series".

EDIT : Especially about the speed of the occurrences.
You will all thank me later.
Have a nice evening 👍

 

[Muiris]

Better i don't speak here anymore, the level is really too low.

It is not what i'm looking for.

its for the best