4 ms·

My comparison on sport betting was that you're betting on your own performance, which you know a lot about, but your opponent's performance is just as important

My comparison on sport betting was that you're betting on your own performance, which you know a lot about, but your opponent's performance is just as important. If your downside is really capped, not just in terms of a stop loss which is really an automatic sell, but actually capped as far as your liability with the type of warrants you're using, then by all means run your bot. I suspect you're far enough invested in this idea that you'll always wonder if it would have worked if you didn't try it. Just don't become the next LTCM.

ta12653421 2y ago
> if your downside is really capped, not just in terms of a stop loss which is really an automatic sell, but actually capped as far as your liability with the type of warrants you're using good catch! actually, its this category of products, they are mainly common in AT, DE and CH: https://en.wikipedia.org/wiki/Turbo_warrant https://en.wikipedia.org/wiki/Turbo_warrant this category is actually a "retail gambler product", as i would call it - in most countries, they are heavily regulated by the fin authority, though they are mainly used by private persons - and even the regulators in most countries says that retail customers mainly loose money with them because they are applied by uninformed investors etc. and compared to >classic options<, there is no margin call or similar or comparable hooks - investors can just loose what they put on the table, nothing more. (if you may ask: no, these are not meant for long term investments as the price decays over longer time, this is how the issuer is financing this instrument - in fact, these instruments are exactly what i need to run my strategy: the decay happens once a month by a small percentage, which is known upfront - but using them for 5 - 15 days is fine and comes more or less at no cost, as long as the position is not going against you) Important: This is not comparable to CFD - which i consider a real "gambling product", since its absolutely intransparent and you are victim to the issuer, e.g. under certain market conditions you cant sell the position somewhere else e.g. (CFD are that a robster-product that platforms for trading EU in EU them have to put a risk-disclaimer on the website and the text for this disclaimer is defined by the regulator :-D) > you'll always wonder if it would have worked if you didn't try it ha! THIS is exactly why i love HN, this is my throwaway account: its actually that thinking of the community over here! :) :) thats also my perspective: I will never find out if i dont do it! So relly, yes.... > Just don't become the next LTCM Unfortunately, this strategy has its specific limits - e.g. you cant scale it unlimited, apart from position management and market chances: things like deposit insurance etc., you would need to split onto several acconuts (which may not hold in case of bankruptcy at the same institute), number of brokers is limited (currently, the app works only with one specific broker/bank, as they are the only one with a full REST interface for their trading desk) E.g. there are chances every day, but there are not unlimited chances every day - e.g. what i can see from the testdata is that the bot quickly runs out of potential trades after a couple of month, max open positions (with money left in the account) is around 50-80 with NASDAQ100 + some SP500 titles. So it should end up as small cash mashine but you cant withdraw a million each year :)

ta12653421 2y ago

> if your downside is really capped, not just in terms of a stop loss which is really an automatic sell, but actually capped as far as your liability with the type of warrants you're using good catch! actually, its this category of products, they are mainly common in AT, DE and CH: https://en.wikipedia.org/wiki/Turbo_warrant https://en.wikipedia.org/wiki/Turbo_warrant this category is actually a "retail gambler product", as i would call it - in most countries, they are heavily regulated by the fin authority, though they are mainly used by private persons - and even the regulators in most countries says that retail customers mainly loose money with them because they are applied by uninformed investors etc. and compared to >classic options<, there is no margin call or similar or comparable hooks - investors can just loose what they put on the table, nothing more. (if you may ask: no, these are not meant for long term investments as the price decays over longer time, this is how the issuer is financing this instrument - in fact, these instruments are exactly what i need to run my strategy: the decay happens once a month by a small percentage, which is known upfront - but using them for 5 - 15 days is fine and comes more or less at no cost, as long as the position is not going against you) Important: This is not comparable to CFD - which i consider a real "gambling product", since its absolutely intransparent and you are victim to the issuer, e.g. under certain market conditions you cant sell the position somewhere else e.g. (CFD are that a robster-product that platforms for trading EU in EU them have to put a risk-disclaimer on the website and the text for this disclaimer is defined by the regulator :-D) > you'll always wonder if it would have worked if you didn't try it ha! THIS is exactly why i love HN, this is my throwaway account: its actually that thinking of the community over here! :) :) thats also my perspective: I will never find out if i dont do it! So relly, yes.... > Just don't become the next LTCM Unfortunately, this strategy has its specific limits - e.g. you cant scale it unlimited, apart from position management and market chances: things like deposit insurance etc., you would need to split onto several acconuts (which may not hold in case of bankruptcy at the same institute), number of brokers is limited (currently, the app works only with one specific broker/bank, as they are the only one with a full REST interface for their trading desk) E.g. there are chances every day, but there are not unlimited chances every day - e.g. what i can see from the testdata is that the bot quickly runs out of potential trades after a couple of month, max open positions (with money left in the account) is around 50-80 with NASDAQ100 + some SP500 titles. So it should end up as small cash mashine but you cant withdraw a million each year :)