Another extremely busy week has passed. For some mysterious reasons, all kinds of equipment failure has happened. From power outage to internet outage and Tradestation going crazy in last hour of trading … I can really use a break.
One good news though is that the deployment of my trading models on MultiCharts has been a success. It is working better than I anticipated. No complications at all and the automated trading works as expected. I will write about it once I gather more data.
Due to the hectic schedule I could not really sit down to do the recording for the video lessons I planned to do. Have to squeeze some time out to get that done.
I am often attracted to read all about lefty since I was young. Here is an interest read about lefty. In traditional Chinese culture, it is a bad omen to be a lefty. So, when I was young, I was persuaded (by violence, of course) to not use my left hand to hold chopsticks or to write. Well, it worked, sort of. I ended up using right hand to write and eat most of the time but then when my right hand is busy, like using the mouse on a computer, I would switch to left hand to write things down or eat.
While I am going through many meetings to raise funding for my new prop trading venture, I often came across this belief that generating north of 50% a year is too good to be true. And when I try to explain how it is possible, it often leads to rejection at once. People don’t like being lectured on what is possible because to some, it implies that you are challenging their ignorance and no one likes that. However, after I include an introduction about Renaissance Tech, it makes the meetings much more pleasant.
Here is an article about Renaissance Tech for those of you never heard of James Simons or his legendary Medallion Fund.
The stock market indices, mainly the Nasdaq 100, continue to push higher has caused quite a lot of debate in the media and on the internet. Expert opinions are all over the place. Personally, I think the broader stock market will be range bounded in the near future as Fed and other central banks reduce their presence in the markets. Without more stimulus, there will be limited upside. And the game is to wait for the US election result. I have no idea what to expect from there so no comment on that.
For those of you interested in applying AI to trading, check out this video of NVidia’s team using AI to create the PacMan game from just watching the game. Look at how far AI has improved over the past 20 years. The current iteration of AI platforms that auto create trading strategies are still very primitive in comparison. And none of that has the correct framework of price discovery built-in hence the trading strategies created are mostly useless at best.
My bet is that we will never see such a platform becoming available to the retail traders because, for a functional tool like this, the creators will work with big money instead. Serving retail traders does not make sense because retail traders are not equipped with the knowledge to appreciate the power of such tools. The theme is an echo of what I experienced with my fund raising effort.
Got to go.
Have a great weekend all!