Re: If Technical Analysis works, why isn\'t there a mutual fund for it?
[ QUOTE ]
Victor Neiderhoffer was one of the most successful traders, worked for Soros for many years with a strategy that produced consistant results year after year, until it blew up and he went broke (twice!).
[/ QUOTE ]
He was also stupid [img]/images/graemlins/smile.gif[/img]
Soros told him a couple of times that he will eventually go broke, Victor didn't believe him and went broke.
HIs strategy was to sell huge amounts of deep OTM-option --> you make money like 99 % of the time but you still have negative expectancy because when you are wrong, you are [censored].
I love those fat tail distributions [img]/images/graemlins/grin.gif[/img]
BTW, Nassim Taleb has a opposite view. He likes to buy those. Usually you are wrong but when you are right, you win big time. The markets has to move greatly for you to make a profit with this system BUT they usually move further than everybody seems to believe --> you have positive expectancy because of this.
|