RETAIL vs INSTITUTIONAL TRADING (The TRUTH)
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- Опубликовано: 18 окт 2024
- This is a video about retail trading and institutional trading.
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There is a tremendous advantage in a retail trader learning institutional methods.
Yes, it gives you a broader perspective.
Im always ready to study! Plus already have a mathematics degree. This knowledge is meant for me! Cant wait to figure that stuff out!
How did it work out
How did it work out??
Thank you for starting to demystify the process
Great. I am looking into building a statistical model, but I can't do much with my bscktest due to lack of knowledge, looking forward to this videos!
What tools are you using?
@@fractalflowpro I could discuss this further in private. But I'm using a pattern identification software, no repaint, and automatic backtest tool to get result of said patterns. Then analyzing in excel. I'm only doing the basic, accuracy, expectancy, max DD, avg DD, and that's about it
StrategyQuant?
@@fractalflowpro What do you mean? The channel? I am subscribed, but I find way too complex for my current level of understanding. I just have the basic knowledge of excel
I mean the software StrategyQuant
This is my best youtube video of the year , and the year is just starting .
Hello,
Thanks for the videos. So,
when do you think you could bring the ecnometric and stochastic calclus together?
Im in particularly interested in the time theory that it entails so please more emphasis on that in your future videos 😀
That will take some time to organize. A lot of content.
I'm looking forward to it soon 🙂.
Keep up the good work
I.e. needs to learn it first.
Thank You very much, the contents are are great and lit. Now I can understand better about Trading World in Institutions view. Keep up the Great Work Bruh.💪🏻💪🏻🔥🔥
Lol i studied math in University. And i understand what r u talking about. So weird. It is so refreshing. It was 12 years ago.
Great information! Thank you 🙏🏾 Do you know if individuals who trade institutionally as a group who know and use econometrics and stochastic calculus. Also, is there an order of learning for an individual trader to learn these foundations for institutional trading? Thank you for your clear and direct educational content 🙏🏾
Thank you!
Great video ,btw how you know this all
I'm planning to buy this course..i have questions..
How long it takes to Learn or master it..
Thanks in advance
After a sometime spent in trading I start to wonder why would the institutions look for liquidity from retail trader with about 200$ account. He/she can't provide liquidity for other traders. Even if all retail traders open position at the same time on the same currency the move wouldn't last long. It is like someone who has a olympic pool tries to fills it with a bucket of water.
If you have enough buckets of water, you can make the olympic pool overflow. The number of small retail traders today is ridiculously large, and they don't usually lose just $200. They keep losing $200 after $200.
Because there are millions of retail traders many with a lot more than a 200 buck account. Specially with fx markets it trades trillions.
But then how do you explain the ocurrancies in the chart when the trend approaches given resistance or support levels commonly reffered to as 'stop loss hunting', i mean they seem like a real market manipulation and not juts algorithmic behaviour
I have a lot of questions?
well i understood alot of the terms you used in your videos but applying all of that into trading?
so lets say we build a model using econometrics but how do we imply it? dont we need a programmer to bring our model into life. and how will the program work ? will it keep triggering trades on its own when the specific criteria are met? and what about the Hybrid TRading strategy no updates on that?
You don't necessarily need a programmer as you can apply econometric models manually with an Excel spreasheet. You can of course program the model, and there are some good solutions for that out there. We have MATLAB that has an econometrics and trading package, which solves a lot of the problems with this; we have a statistical software called R; and we have Python of course. The difficulty with this is not the model itself, but making the "infrastructure" of the model work in real time since the first calculations until the triggering of orders. That's an issue because you need to make different programming languages talk to each other without error in real time. Even banks haven't automated this entirely already. That's why they still have traders who follow the instructions of the econometric model. As far as the HTS, the strategy had some faults that I was unable to solve, so I will not release it
Great in depth answer. Things will start falling in place once you start beginning the process from ground up. The good news for us who follow you regularly is that we get to absorb all of these advanced level of disciplines which we wouldn't and couldn't even pursue otherwise. Not to mention how lucid and understandable you make it. I am excited.
As always I appreciate the content you produce but does this mean that someone with dyscalculia will never be able to trade successfully?
If you have trouble comprehending mathematics, there are certain institutional methods that will be difficult to understand. Other types of strategies not so much.
Why would anyone want to mimic institutional traders when the overwhelming majority of money managers consistently fail to beat the returns of the S&P?
Moeny managers have a long list of regulations to follow, which is something that diminishes their performance. Retail traders don't have that problem, so if they learn the institutional methods, they can apply it more freely and have good returns.
@@fractalflowpro Arbitrage, front running, pump and dump, breach of the Chinese wall between research and IB. None of these things are effective for retail traders.
You're right, but there are certain types of arbitrage that are definetely suitable for retail traders though... not all of them as you mentioned. There are also certain types of sepculation and hedging that are suitable for the retail trader.
@@harrychu650 essentially none of this is effective and more or less an run on of what could be 2 minute video.
Thank you sir 🙏
Does Jim simons hedge fund use this maths calculus to trade or does he do it with a combination of technical analysis?
He uses some econometrics models like statistical arbitrage, but the bulk of what he does is related to machine learning.
The market is no exception
Everything complex is simplified
Not true
are there standard books about econometrics and stochastic calc. used for trading? if so, will fully understanding them help us retail traders get an edge?
Not that I know of. That's why I wrote the ebooks myself.
PRETTY AWESOME, SIR
so whats your conclusion ? nobody can make money on this ?
The conclusion is that you can make money if you understand what you're doing both with retail methods and institutional methods. I like to say that you should never pretend you understood something, because as soon as that happens, you're doomed. The conclusion is not that it's impossible to make money with trading if you are a retail trader. The conclusion is that there are many different ways of doing this than what most retail traders realize, and it's a good idea to learn about them.
I have this basic....
I hope this is, institutional trading for dummies.
There is no such thing
Have you learned the institutional trading ?
Institutional trader = earn big money for clients = smart money
Retail trader = lose big money to institutional traders = stupid money
❤
😍😍😍😍😍😍😍😍😍😍😍😍😍
Yea makes sense if a bank lends money to an oil company the best way to offset that risk is to trade forex 😂 this video is a load of shit
Nobody said that banks trade forex to offset risk of lending money. Banks offset risk by trading derivatives. I would love to read a counter argument on that, but I'm sure I won't since you don't even have the patience to watch the video properly.