6 ms·

When trading real money in a real market, predictions based on historical data go out the window. Historical data will never be able to truly simulate manipula

When trading real money in a real market, predictions based on historical data go out the window. Historical data will never be able to truly simulate manipulation or sympathetic, symbiotic or parasitic relationships. Ever back-test a trading system that simulates a Market Maker letting low block go under the bid or dialing down the sensitivity of the bid vs. the ask? Speaking from experience. That's why I'm developing an algorithmic trading system based on sympathetic, symbiotic and parasitic hidden connections. Also Ref: Contagious Speculation and a Cure for Cancer: A Non-Event that Made Stock Prices Soar - http://www0.gsb.columbia.edu/whoswho/getpub.cfm?pub=1555 http://www0.gsb.columbia.edu/whoswho/getpub.cfm?pub=1555

pbowyer 12y ago
> That's why I'm developing an algorithmic trading system based on sympathetic, symbiotic and parasitic hidden connections. That sounds fascinating. Do keep us informed!
- biomimic 12y ago
  Should be done by tomorrow!
- biomimic 12y ago
  http://www.cymetica.com/recommend/app/hidden_connections?query=linux&db=all http://www.cymetica.com/recommend/app/hidden_connections?que...
derriz 12y ago
"When trading real money in a real market, predictions based on historical data go out the window." No they don't. Depends on the style of course but most arb or stat arb strategies are fully derived from historical data. "Ever back-test a trading system that simulates a Market Maker letting low block go under the bid or dialing down the sensitivity of the bid vs. the ask" Could you express this more clearly? Your language is sloppy. Yes I've back tested lots of market making strategies - all far more complex in behavior than traditional market making.
- biomimic 12y ago
  Show me how you back test for manipulation I'd love to incorporate that into my system! Don't forget to read that paper above by Gur Huberman. Good starting point. More slopppy+---adsf language for you...::: How Brokers Can Avoid A Market-Maker's Tricks http://www.investopedia.com/articles/financialcareers/06/mmakertricks.asp http://www.investopedia.com/articles/financialcareers/06/mma... lets incorporate this too. I also agree that TA and back testing applied to long positioning workw great in bull market!
  - derriz 12y ago
    If you think there is any insight into current market structure in that linked article, you're on the wrong track. It manages to be 15 years out of date and confuse open outcry (pit trading) with the specialist/broker system employed for equities. And there's nothing magic about simulating "manipulation" - you're not one of those deranged paranoid zerohedge balloonheads are you? And it's clear you have no experience in this area if you say something as trite as your last sentence. Good luck with your "system". Good luck with your "system".
    - biomimic 12y ago
      Yawn.

pbowyer 12y ago

> That's why I'm developing an algorithmic trading system based on sympathetic, symbiotic and parasitic hidden connections. That sounds fascinating. Do keep us informed!

biomimic 12y ago
Should be done by tomorrow!
biomimic 12y ago
http://www.cymetica.com/recommend/app/hidden_connections?query=linux&db=all http://www.cymetica.com/recommend/app/hidden_connections?que...

derriz 12y ago

"When trading real money in a real market, predictions based on historical data go out the window." No they don't. Depends on the style of course but most arb or stat arb strategies are fully derived from historical data. "Ever back-test a trading system that simulates a Market Maker letting low block go under the bid or dialing down the sensitivity of the bid vs. the ask" Could you express this more clearly? Your language is sloppy. Yes I've back tested lots of market making strategies - all far more complex in behavior than traditional market making.

biomimic 12y ago
Show me how you back test for manipulation I'd love to incorporate that into my system! Don't forget to read that paper above by Gur Huberman. Good starting point. More slopppy+---adsf language for you...::: How Brokers Can Avoid A Market-Maker's Tricks http://www.investopedia.com/articles/financialcareers/06/mmakertricks.asp http://www.investopedia.com/articles/financialcareers/06/mma... lets incorporate this too. I also agree that TA and back testing applied to long positioning workw great in bull market!
- derriz 12y ago
  If you think there is any insight into current market structure in that linked article, you're on the wrong track. It manages to be 15 years out of date and confuse open outcry (pit trading) with the specialist/broker system employed for equities. And there's nothing magic about simulating "manipulation" - you're not one of those deranged paranoid zerohedge balloonheads are you? And it's clear you have no experience in this area if you say something as trite as your last sentence. Good luck with your "system". Good luck with your "system".
  - biomimic 12y ago
    Yawn.