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and how do you prove some method scale up without either already being on the million dollar scale or disclosing your secret sauce?
by gcb0 8y ago
and how do you prove some method scale up without either already being on the million dollar scale or disclosing your secret sauce?
- bduerst 8y agoShort of spending a million dollars right then and there, you can use historical market data. Or datasets provided by the person you're trying to prove it to. Keep in mind that after a certain volume, your model would start influencing the market itself.
- ohaideredevs 8y agoThe reason financial transactions don't scale is volume - your $100 trade can move a penny stock to $.02 from $.0002 a share if there is no volume. Some markets can absorb an enormous amount of volume, such as the FOREX market. Now, when you start making good trades in a "big" market, intelligent players can mimic / play off of them, so it is hard to prove in that regard. At a minimum though, you could prove that it works on assets that are not volume-dependent.