private discussions between bank traders

josker

Junior member
11 1
Hi!
I'm trying to be better at trading.
Anyone knows how to get the standard deviation of a future contract on the 1mn chart?
For example, if i want to trade the emini SP500, i think i must measure the standard deviation
based on the SP500 itself, or? i'm a bit lost. i heard a private conversation between 2 excellent traders of banks,
talking about their holy grails.
Thanks,
Cordially
 

gc1

Well-known member
273 5
I don't see how such a calculation would be of much use. The number would be heavily dependent on the number of samples it is calculated over. Might be useful for identifying days or times when it is not worth trading because price isn't moving much, but that would be evident from the chart.
 

josker

Junior member
11 1
They said : i take the standard deviation off the underlying on the 1mn chart and i buy when it's greater than the low and etc. How do you understand that ?
 

gc1

Well-known member
273 5
I don't understand it at all. Wikipedia has a good explanation of standard deviation calculation, but financial markets are much more chaotic than the sort of things it is generally used for. Traders in banks have much lower transaction costs and greater size limits than home traders so I doubt if any method they employ can be usefully employed by the smaller trader.
 

Mr. Charts

Legendary member
7,368 1,185
They said : i take the standard deviation off the underlying on the 1mn chart and i buy when it's greater than the low and etc. How do you understand that ?

Sounds like a sort of adapted mean reversion strategy.
Don't waste time and effort with it.
 

josker

Junior member
11 1
thanks all. i'll try to have a better understanding of what they do to make their money. in this business, bank traders are the masters, because there is programmers, strategists, etc, that work with them in order to find profitable strategies and test them. The guys i'm talking about make at least 20% of return every day for his bank using this strategy. I think to make money, we must try to do like the masters, that's why i tried to share the stuff with you, and together we were be able to find the key.
So, thank you guys for your contributions, i'll try to approach these guys, and know better about the strategy.
;)
 

neil

Legendary member
5,167 747
thanks all. i'll try to have a better understanding of what they do to make their money. in this business, bank traders are the masters, because there is programmers, strategists, etc, that work with them in order to find profitable strategies and test them. The guys i'm talking about make at least 20% of return every day for his bank using this strategy. I think to make money, we must try to do like the masters, that's why i tried to share the stuff with you, and together we were be able to find the key.
So, thank you guys for your contributions, i'll try to approach these guys, and know better about the strategy.
;)

Me thinks a developing scam was stopped in its' tracks - well done T2W people(y)
 

josker

Junior member
11 1
Me thinks a developing scam was stopped in its' tracks - well done T2W people(y)

A scam??? :eek:
you guy watch too many movies, and you live too much in the spectrum of the conspiracy theory, it's like a kid thinking that every passerby will kidnap him.
I was just about to share ideas, and ask questions, not to sell anything to anyone.
Please, do yourself a favor, change :!:
 
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