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Yeah, this is interesting, but there are some annoying realities: 1) If you make something like 3 intra-day trades (buy and sell on the same day) in some defin
by JabavuAdams 16y ago
Yeah, this is interesting, but there are some annoying realities:
1) If you make something like 3 intra-day trades (buy and sell on the same day) in some defined period (a week?) the SEC will classify you as a "pattern day trader". To be allowed to do that, you need an account with something like $25k USD min.
2) There are a few items that people often forget in simplified models that will completely eat any theoretical profits: brokerage fees, taxes, and currency-exchange effects (e.g. if you're a Canadian trading US stocks).
3) After all that, you're competing with the big guys who have a deep knowledge of how trading works, and fast access to more information than you do. It's an insider's game.
- JabavuAdams 16y agoI should add that (market-price) trades aren't completed in an all-or-nothing fashion, unless you specify this (which brings another set of costs and risks). E.g. if you want to buy 1000 shares, it might happen in several chunks (say 200, 200, 600), with the price going up each time. So, the process of buying or selling moves the price, which is another reason why trading with real money against competitors is different from training against historical data.
- deleted 16y ago[deleted]
- dwwoelfel 16y ago(1) doesn't apply to futures or forex.
- templaedhel 16y agoI have no experience, and little intrest in stock trading. I was however interested in the AI and automation aspects of this challenge, with the stock market being a good source of data with a definite but "unknown" solution. However due to the obstructions you brought to my attention, it seems although the stock market would not be an ideal application for this.
- JabavuAdams 16y agoNow I feel like a jerk for discouraging you. Motivation is fragile. :\